FinTech IPO Index Gains 1.3% as Katapult and SoFi Lead Platforms Higher

The FinTech IPO Index’s momentum through the past week was carried by a slew of company-specific announcements and partnerships. Earnings season has yet to officially make a splash in the group, though Sezzle’s pre-announcement was a notable exception. The overall Index was up 1.3%.

Katapult and SoFi Lead the Pack

Katapult continued to surge, adding 22% through the past five sessions, continuing a streak underpinned by the announcement of strong fourth-quarter originations.

SoFi followed with a 16.2% gain through the week, with a $525 million personal loan securitization agreement that it announced closed in Q4 2024, with funds and accounts managed by PGIM Fixed Income.

Upstart announced this week that it has introduced enhancements to its auto retail platform. The updates help car dealers streamline financing and close sales more quickly. The new enhancement includes a redesigned layout that places “critical profit information and key workflows upfront for easy access,” Upstart said. In addition, Upstart has rolled out a new credit dash that offers initial, complimentary FICO Auto Scores on soft pulls, a downloadable credit report, and fraud and compliance checks for each customer.

In a separate announcement also tied to Upstart, Pelican State Credit Union said it partnered with Upstart to offer personal loans to more consumers. Pelican State Credit Union, which is based in Louisiana and has 50,000 members, became an Upstart Referral Network lending partner last August. With the Upstart Referral Network, qualified personal loan applicants on Upstart.com who meet Pelican’s credit policies will receive tailored offer as they move into a Pelican-branded experience to complete the online member application and closing process.

Upstart’s shares were 10.6% higher through the week.

Huize’s stock gained 1.7%. As noted in a company release, Huize said that in 2024, it had served over 1.3 million families, with more than 12 million insurance policies facilitated in 2024. The company also assisted in processing 160,800 insurance claims in 2024, a 74.7% increase compared to 2023. The total amount of claims settled in 2024 was 808 million RMB ($110.9 million), a 41.7% increase from the previous year, per the company’s announcement.

Janover’s shares were 4.7% higher. As noted here, the company has said that its artificial intelligence-powered SaaS and marketplace platform for the multifamily and commercial real estate industry has grown its annual recurring revenues from subscription revenue by more than 190% over last year and approximately 65% sequentially in the fourth quarter.

Among the Declining Stocks…

Oportun shares slipped 1.8%. The company said last week that it had issued $425 million of one-year revolving fixed rate asset-backed notes secured by a pool of unsecured and secured installment loans.

Flywire’s stock lost 3.7%. At the end of the week, the State Bank of India (SBI), the country’s largest bank, announced that it is enabling the digital disbursement of education loans in Indian Rupees directly to higher education institutions by expanding its already existing partnership with Flywire. The initiative is part of the bank’s commitment to broaden the scope of education loan disbursements with enhanced customer experience.

Through the expanded joint efforts, students can select SBI’s overseas education loan option — “Global Ed-Vantage” — as the source of funds, and remit fees through the bank’s Processing Cells/Branches disbursing education loans.

Marqeta’s stock was 2.9% lower, having announced it is powering Trading 212’s launch into 20 countries in continental Europe. Marqeta powers the Trading 212 card, a debit card.

Ahead of attending a sell-side investment conference, Sezzle said it “anticipates exceeding 2024 revenue and income guidance provided in conjunction with its third-quarter 2024 earnings release.” Prior revenue guidance had called for 55% growth in revenues for 2024.

In a statement that accompanied the announcement, CEO Charlie Youakim stated that “exceptional holiday demand and the effective execution of our strategic initiatives fueled our fourth-quarter outperformance, and gives us confidence that we will exceed our prior 2024 guidance. We’re encouraged by these positive trends, with credit losses aligning with expectations. We look forward to sharing our fiscal 2024 results at the end of February.”

Sezzle shares lost 8%.