In 2014, KPMG together with AWI and FSC released the “50 Best Fintech Innovators” report, one of the first papers that examined the most prominent Fintech players globally. 5 years on, CFTE is taking an in-depth look at the evolution of these 50 companies.
Since December 2014, the top 50 Fintech firms as listed by KPMG have not kept up with the general funding pattern of the industry. This is largely down to their success as Fintech startups, meaning they did not need to raise more equity funding from venture capitalists. Four out of the 50 have had IPOs since, with Xero having an IPO as far back as 2007 .
The four firms with IPOs, Funding Circle, Square, Lending Club and OnDeck, have a combined market cap for US$32.6 billion, which boils down to over US$6.5 billion per company on average. However, it is important to note that the US$30 billion valuation of Square substantially raised the overall average, which would have been US$599.65 million without it.
Three of the four are SME lenders, with two of them being peer-to-peer platforms. However, all three of these startups have since experienced a rocky road post-IPO, with their market capitalisations dropping since going public. Square, the payment firm, has been the most successful, with a current valuation of 10x its IPO. But how and why has it performed much better than its counterparts?
The details and more will be available in the Fintech 50: Back to the Future Report available on July 22. Sign up here to automatically get it, for free, upon release.
The “Fintech 50: 5 Years in Fintech” report by CFTE presents their milestones, investment deals, growth and talent trends. We examine their hiring, survival rate, changing business models, success against incumbents, and expansion both geographically and in terms of market share.