Fintech IPO index rises 6% in 5 days

During the ongoing earnings season, the FinTech IPO Index saw a significant increase of 6% over the past five days.

NerdWallet’s shares surged by 67% after the company reported $153 million in revenues, a 7% YoY increase. NerdWallet introduced NerdUp, a secured credit card aimed at helping consumers responsibly build and improve their credit. NerdUp offers a lower minimum deposit of $100, has no annual or monthly fees, and a 0% interest rate for users who pay off their balance each month.

SoFi’s shares gained 7.7% during the earnings season, with new membership momentum increasing by 47% YoY to 717,000. Student loan originations were up 101% to $919.3 million, marking the company’s highest quarter of originations since the first quarter of 2022. SoFi also reported strong growth in SoFi Money products, with 3.1 million accounts and a median FICO score of 743 for its direct deposit portfolio.

Affirm saw a 20.8% increase in shares during the past week, driven by its collaboration with Amazon Business to offer buy now, pay later (BNPL) services to eligible sole proprietor businesses. The service will be available at checkout to all eligible Amazon Business sole proprietor customers by Black Friday.

Open Lending’s shares were up 1% after the company added new alternative data attributes for auto loan applicants to improve its Lenders Protection solution. These enhancements enable financial institutions to provide competitive pricing to a larger borrower pool, increase loan volume, and minimise risk by leveraging extensive data and AI.

Hippo Holdings experienced a 9.4% gain in shares after announcing staff reductions of about 20% to increase efficiency and focus on strategic priorities. The company expects to incur charges of $2.2 million to $2.7 million for severance and related costs.

Toast introduced a mobile app, Toast Now, that allows restaurateurs to manage their businesses on the go. The app offers real-time updates with live sales and labor reporting and a “Manager Log” for communication between owners, operators, and managers. Toast’s shares gained 3.5%.

Nuvei was selected by KoreConX, an infrastructure technology platform that facilitates SEC-compliant investments in private companies. This partnership allows private U.S. businesses connected to KoreConX to accept investments through card payments and account-to-account transactions, leading to a 7.8% increase in Nuvei’s stock.

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