FinTech IPO Index Extends Post-Earnings Slump

A shortened trading week, a muted performance and, in fact, barely much of a performance at all.

To that end, the FinTech IPO Index barely budged, losing 0.1%.

The flurry of earnings is pretty much done, and the volatility of the past several weeks has been quelled a bit. As has been widely reported, many of the names in our universe have spotlighted concerns about muted consumer spending and enterprise investment slowing too — all of which paints a darker picture for the top-line momentum of many of these companies.

So far, just a few days into September, the index is down nearly 11%, with a year-to-date loss that tops 40%.

FinTech IPOs Take a Breather With Slight Loss

Katapult rocketed ahead by 16.8%. In recent company news, Katapult said it has added SimpleTire, a leading online tire retailer, to its network of merchant partners. The partnership gives all SimpleTire customers — and particularly those with non-prime credit ratings who may not have access to traditional financing options — what is billed in a press release as “a more flexible and transparent way to obtain replacement tires.”

Enfusion gained 13.1%, continuing its rise amid press reports late last month that the company has been the target of takeover interest.

9F Group lost 21%. And although there was no company-specific news in the past week, it was previously reported that the company’s stock had been trading below its minimum bid price of $1 for its American depositary shares. The company now has a 180-day grace period to meet that listing requirement (for at least 10 business days). The shares, at a recent 50 cents each, are off about 79% in the past 52 weeks.

Huize lost a bit more than 11%, trailed by Nuvei, which slipped 3%. In the case of the latter company, news came this week that Software-as-a-Service (SaaS) B2C and B2B marketplace platform Arcadier has selected Nuvei as its preferred payment partner in the United States, Latin America and Europe, the Middle East and Africa (EMEA). Marketplace merchants will have access to customized and optimized payment flows, customizable reporting and reconciliation dashboards, and more than 570 alternative payment methods that they can add to their checkout flows.

The deployment of this payment technology will help Asia-based Arcadier as it expands globally, the companies said. The pact with Arcadier follows a separate announcement in which Nuvei said it had been selected by Air Transat to deliver a single point of payment acceptance for the Canadian airline.