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Fintechs to the rescue.
That’s one way of describing the sudden burst of activity in the IPO market. Within the span of a few hours on Tuesday, eToro priced its IPO above its initial range and Chime filed an S-1, setting the stage for its own listing.
Chime, a digital banking startup founded in 2012, revealed that its revenue for fiscal year 2024 was $1.67 billion, up from $1.28 billion a year prior. The company’s net loss of $25 million is down substantially from $203 million in 2023, and $470 million in 2022.
The company was cofounded by current CEO Chris Britt and Ryan King, and has for years been considered among the leading fintech unicorns gearing up for an IPO. As if to prove that it’s part of a larger trend rather than being a one-off (and no doubt to claim a juicier multiple), the company insisted in its S-1 that “Chime is a technology company, not a bank.”
Whatever label you choose, it seems that this crop of fintech darlings, weathered by the post-ZIRP (zero-interest-rate policy) era, are prepared to step forward as public companies. eToro, a Robinhood competitor founded in 2007 and based in Israel, begins trading on the Nasdaq today under the symbol ETOR. The company priced its IPO Tuesday at $52 a share, giving it a $4.2 billion valuation.
So, what’s going on? Are fintechs the brave vanguard of the long-awaited IPO boom?
As always, it’s complicated. eToro’s IPO filing comes after a shelved SPAC attempt, and it remains to be seen how the company’s public offering will be received (though by the time you read this, we may very well know). Then there’s Klarna: After filing to go public in March with much fanfare, the company pulled back wildly on its IPO plans, postponing until markets stabilize.
And that’s the crux of the issue: Going public in a volatile market still jittery with tariffs is tough. Nevertheless, we just might be headed toward a fintech summer.
These long-simmering, scaled fintechs—battle-tested by COVID, rising interest rates, and regulatory headwinds—may finally be getting their moment in the sun.
See you tomorrow,
Allie Garfinkle
X: @agarfinks
Email: alexandra.garfinkle@fortune.com
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This story was originally featured on Fortune.com
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https://fortune.com/2025/05/14/chime-rings-the-ipo-bell/
Allie Garfinkle
