FinTech IPO Index Gains 2.5% Amid SoFi Earnings and DeFi Development’s Private Placement

Earnings season is not yet in full swing for the FinTech IPO Index, which gained 2.5% through the week.

SoFi was the earnings-related standout, with shares up 1.6%.

As PYMNTS reported in its coverage of the earnings results, the company added 800,000 new members and 1.2 million new products, representing 34% and 35% year-on-year growth, respectively.

Revenues were 33% higher in the quarter to $771 million on an adjusted basis. During a conference call with analysts, CEO Anthony Noto said cross-platform buying by members continued to be “very strong,” as 32% of new products were opened by existing members.

“Having a strong brand creates a halo effect that makes our performance marketing of each product more efficient,” Noto said. Within the financial services segment, Noto said revenues have been doubling year over year, driven by SoFi Money, where annualized debit spend now stands at $14 billion.

“We’ve also grown our total deposits to $27.3 billion,” Noto said, since the company acquired a banking license in 2022, which lowers funding costs to launch new products.

Chief Financial Officer Chris Lapointe said on the call: “The health of our consumer remains strong. Despite the market volatility, we are not seeing signs of weakness. Our personal loan borrowers have a weighted average income of $158,000 and a weighted average FICO score of 743, while our student loan borrowers have a weighted average income of $134,000 with a weighted average FICO score of 769.”

For personal loans, the on-balance sheet 90-day delinquency rate was 0.46%, down 0.09% sequentially. The annualized charge-off rate also declined to 3.31% versus 3.37% in the prior quarter.

DeFi Development Corp. (formerly Janover) shares leaped 65% as news came this week that the company has received a $24 million private investment in public equity — with investors including Galaxy Digital and Amber International — to, as the company said, “scale its SOL [Solana] position.”

Strategic Partnerships Across the Globe

Xero and BILL said this week that they have launched a strategic partnership. As part of their joint efforts, Xero will embed a bill pay solution from BILL into the Xero platform. Once available, the solution will integrate with BILL’s payments options, allowing customers to more efficiently pay their bills without leaving the Xero Platform, the companies said. BILL shares were 1.5% higher.

nCino shares slipped 1.3%.

The company boosted its presence in Europe, as it said Banque Raiffeisen, the Luxembourg’s cooperative bank, has chosen the nCino Platform to digitize its loan and credit chain management. With nCino’s connected platform, the bank can accelerate loan processing time and create a seamless digital customer experience.

In Upstart-related news, Lake Trust Credit Union, with 200,000 members and businesses throughout Michigan with over $2.5 billion in assets, is partnering with the lending marketplace to offer personal loans to more consumers. Lake Trust Credit Union started lending as a partner on the Upstart Referral Network in January. As part of the Upstart Referral Network, qualified personal loan applicants on Upstart.com receive tailored offers as they transition into a Lake Trust-branded experience to complete the online member application and closing process. Upstart’s stock was 2.1% higher.

Flywire said it had forged a partnership with Avanse Financial Services, India’s second-largest education-focused non-banking financial company (NBFC). The collaboration simplifies the process of disbursing education loan payments for Indian students pursuing education opportunities abroad. The tuition loan disbursements are initiated by Avanse in Indian Rupees and builds on Flywire’s existing banking and loan integrations in India. The solution is available immediately and supports payment flows from India to academic destinations worldwide.

Flywire said it is working with Avanse to make refunds more efficient, while automating Tax Collected at Source (TCS) calculations. The stock surged 8.5%.

Buy now, pay later network Affirm is introducing its artificial intelligence-powered platform, AdaptAI, to its merchant partners. Merchants can provide shoppers with personalized, targeted, real-time promotions and credit offers at the point of purchase via the offering, the company said Wednesday. Affirm’s common shares rose by 3.2%.