Billtrust’s 13% Rally Fails to Stop FinTech IPO Index’s Continued Slide

The FinTech IPO Index slipped 6.3% through the week, which cuts its monthly gain from double-digit percentage points to a current 5.6%.

The year-to-date performance is still significantly to the downside, at 38.1%.

Earnings are largely in the rearview mirror, and in large part the markets are still digesting commentary that points to a cautious macro picture on consumer spending and other factors. And, of course, individual company headlines still move names — some of them having to do with technicalities governing stock market listings.

9F Group sank 39%, in the wake of a notice from Nasdaq 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.

Earnings Impact Still Lingers

Katapult was off 23.1%, continuing a drop seen in the wake of earnings earlier in the month, as gross originations for the second quarter were $46.4 million, a 28% decline from the prior year due. The company has cited macro concerns, including inflation, as headwinds to consumer confidence and spending.

Remitly brought up the rear, close behind Katapult, also with a slightly more than 23% drop. As noted in this space last week, the company announced a definitive agreement to acquire Rewire, an Israeli-based financial services platform for migrant workers. The purchase price was $80 million, in a mix of cash and stock. And in reference to the mechanics of the deal, the companies said in their joint announcement that Rewire’s remittance platform will complement Remitly’s focus on cross-border payments for migrants.

Enfusion lost just under 22%, having reported results that were spotlighted in an earlier edition of our Index tracker. This week, the company said that it has appointed Oleg Movchan as interim chief executive officer, effective Aug. 21. Movchan succeeds Thomas Kim, who has resigned as CEO and as a director of the company, citing a desire to spend more time with family. The company said in the same release that while it was keeping its revenue outlook in place, in connection with the CEO search and transition, it “anticipates incurring associated costs beginning in the third quarter, which will materially impact Adjusted EBITDA.” That line item, we note, is a rough measure of cash flow.

Paysafe was down 15.8%; this past week the company said it was expanding into Argentina alongside its eCash payment solution Paysafecard.

These losses were more than enough to overcome the gains seen in Bill.com, which was up 13.7% through the past five sessions. In our own coverage of the company’s recent results, we noted that the  company said that 400,000 businesses were using the company’s product, three times the number of users a year ago. Triterras trailed with a 12% gain, though there was no company-specific crossing the wires or released directly by the firm in the past week.