The latest quarterly reports by two fintech companies: Coinbase and Upstart Holdings reported historic growth rates in their recent quarterly reports on Tuesday night. The most valuable tech companies such as Facebook, Google and more never experienced such growth rates.
The cryptocurrency exchange reported a 12-fold increase in revenue from a year ago to $2.23 billion. It went public in April. It has a diluted market cap of $77 billion. Its recent quarter trading volumes were at $462 billion and its volumes in same quarter last year were at $28 billion while assets increased from $26 billion to $180 billion. Net profit saw an almost 4,900 percent increase from a year earlier and stood at $1.6 billion.
The online lender said that its revenues increased 11-fold from a year earlier to $194 million. Upstart filed its IPO in December at $20 per share. On Wednesday, it saw a rise of 24 percent. Its current share price is approximately $170, and its market value is over $12 billion.
In private markets, fintechs also have huge valuations according to CB Insights, which is a research and analytics firm. The firm said that eight among 20 of the most valuable private tech firms were fintechs. Some of their values are as follows:
- Stripe — $95 billion
- Sweden’s Klarma — $45.6 billion
- K.’s Revolut — $33 billion
- Brazil’s Nubank — $30 billion
- Chime — $14.5 billion
- Plaid — $13.4 billion
These new age fintech companies are slowly taking over the activities of banks as there are changes in both consumers expectations as well as the way money flows. JP Morgan Chase’s CEO Jamie Dimon had cautioned shareholders in his annual letter in April when he mentioned that banks were playing a smaller role in the financial system.
The number of fintechs — both private and public are increasing, and they seem to be in the right place at the right time as there is a huge consumers shift, and their platforms are used for a plethora of financial services instead of traditional banks.