The fintech industry in the Asia Pacific region is booming, with several high-growth companies potentially eyeing an initial public offering (IPO) as early as 2024. Rapid digitalisation, a young internet-savvy population, and underserved markets make the region ripe for fintech disruption.
Despite global fintech funding nosediving to US$39.2 billion in 2023, half of the previous year’s amount, and deal volume slipping 38% to 3,801, the lowest levels since 2017 — 2024 could see at least one fintech IPO, if not a whole wave of related IPOs as companies seek to capitalise on high valuations and strengthening investor appetite.
In this listicle, we look at five of the most prominent fintechs that are likely to pursue stock market listings this year. Much like regional digital upstarts such as superapp Grab and Indonesia’s GoTo Group, these companies have experienced tremendous growth and are looking to raise capital for expansion. However, pursuing an IPO is still a big decision — factors like market volatility, regulatory readiness, and competitive dynamics will play into whether a fintech will take the plunge in 2024 or wait.
Overall, the outlook for at least one fintech IPO emanating out of the Asia Pacific area is bright in 2024. But these five leading companies face key considerations around timing and execution as they weigh the opportunities and risks of going public this year.
bolttech
Insurtech bolttech is a Singapore-based company that provides a platform to connect insurers, distributors, and customers for protection and insurance products. It was founded in 2020 and has expanded to 30-plus markets across three continents, serving various sectors such as travel, device protection, and financial services.
Last year it was reported by Bloomberg that bolttech is considering a US IPO that could generate between US$250 million and US$300 million. While discussions continue, the details of the IPO, such as its size and timing, are yet to be finalised.
Bolstered by the backing of Hong Kong tycoon Richard Li, bolttech has approached banks for pitches, potentially setting the stage for a 2024 IPO debut. Since July 2021, bolttech has amassed US$493 million across six funding rounds from backers including Tokio Marine from Japan, global life insurance leader MetLife, and Malaysia’s state fund Khazanah Nasional, among others.
In September of 2023, bolttech augmented its US$196 million Series B funding with an extra US$50 million, achieving a valuation of US$1.6 billion.
bolttech said that it will use the proceeds to further fuel its growth through investments in proprietary technology, digital capabilities for business partners and end consumers as well as talent across its 30-plus markets. In addition to that, the funds will also be used to explore opportunities to accelerate its international growth.
Launched in 2020 with a B2B2C model, bolttech has licenses to operate throughout Asia, Europe and all 50 U.S. states with an ecosystem that connects 700 distribution partners with more than 230 insurance providers and offers in excess of 6,000 product variations. In 2023, the insurtech claimed to have quoted approximately US$55 billion worth of annualised premiums.
Airwallex
Australian global payments company Airwallex, with roots in Hong Kong and Singapore, is gearing up for an IPO in the next two years, as stated by its billionaire founder and CEO, Jack Zhang.
Originating from Melbourne, Airwallex has swiftly expanded in eight years, providing businesses with international money transfer services and multi-currency accounts.
Despite its intricate financial setup, including a parent company in the Cayman Islands, Zhang reports that Airwallex was likely profitable last year after finalising its accounts, with about US$80 billion processed in transactions over twelve months.
The Australian Financial Review notes the firm, with a US$5.6 billion valuation, expects to hit US$350 million in annual recurring revenue by 2023. Following its Series E2 funding round in October 2022, Airwallex secured an additional US$100 million, elevating its total fundraising to over US$900 million.
The forthcoming IPO seeks to reward early backers such as Tencent and Paul Bassatt’s Square Peg, while establishing its market valuation. Tencent has a 12.5% share, whereas Zhang owns 14.1%. The firm has undergone scrutiny for its compliance and anti-money laundering measures, with 2020 and 2022 audits revealing shortcomings in employee integrity checks.
Zhang admitted to past compliance challenges, and Airwallex has also dealt with a demanding work environment and high turnover rates, particularly in its legal, risk, and compliance teams, which experienced a 14% departure rate in one 2022 quarter.
New appointments like Stripe’s risk chief Alex Hollombe and Google’s ex-legal director David Shanks have been made to bolster these sectors. Zhang defends Airwallex, arguing that facing hurdles is typical for startups in the fast-paced fintech industry as they disrupt traditional practices.
Nium
Singapore’s Nium, a payments fintech, is on the path to becoming a publicly traded entity within two years. Its journey famously began when co-founder and CEO Prajit Nanu encountered difficulties sending money from India to Thailand for a friend’s bachelor party in 2013, leading to the creation of this cross-border remittance platform.
In a statement last year, the company, valued at US$2 billion, outlined its intention to pursue a US IPO by the second quarter of 2025, as shared by Nanu in a July 2023 Bloomberg News interview. He anticipates Nium achieving break-even status within the next year and securing profitability ahead of its IPO.
Prajit Nanu
“We should be ready for an IPO by the end of next year, and then start looking at how the market is in 2025. No one can time the market, but the focus for us over the next 18 months is to be fully prepared,”
Nanu remarked at the time.
Furthermore, Nanu disclosed to Bloomberg plans for Nium to acquire two to three payments startups over the next year, targeting regions such as Africa, the Middle East, and Latin America. Nium was recently named the only Asia-based fintech in Forbes’ Fintech 50 list, and also has a European base on in London.
GCash
GCash, the dominant e-wallet fintech in the Philippines, is preparing for its IPO in the second half of 2024, dependent on the state of the market, according to Oscar A. Reyes, Jr., the president and CEO of G-Xchange, which operates GCash.
Oscar A. Reyes, Jr.
During a recent press conference, Oscar underscored the company’s preparedness for the IPO, with its timing reliant on market acceptance. Considering the current pessimistic market sentiment, he observed,
“We’re preparing internally so that we can be ready for this year; it is a question of the market. From how it looks, the market doesn’t seem hopeful right now. I think we’re waiting for the market to recover. Hopefully by the second half,”
Oscar conveyed, adopting a cautiously optimistic stance.
With over 80 million registered users and servicing more than 60 million in financial transactions, GCash’s significant presence in the digital finance domain marks it as a key fintech player in the Philippines. Its parent entity, Globe Fintech Innovations, Inc., is linked to the well-known Globe Telecom, Inc.
Reflecting global financial movements, the Philippine central bank is expected to cut benchmark interest rates by June, following anticipated policy rate reductions by the US Federal Reserve, making mid-2024 an opportune time for GCash’s IPO plans.
Highlighting its international ambitions, GCash has secured authorisation to fully expand into 16 countries, including launching a beta version in the UK, Italy, Australia, the US, Canada, and Japan. This global venture highlights the company’s aspirations and capacity for growth, also pursuing market approvals in the Middle East, and additional European and Asian countries in the first quarter.
The forthcoming GCash IPO and its worldwide expansion endeavors underscore the momentum for the Philippines’ biggest fintech in 2024, and the evolving role of e-wallets in Asia Pacific.
JULO
JULO, a peer-to-peer lending platform from Indonesia, reported achieving an annual recurring revenue of over US$120 million in 2023. This year, the company experienced a 50% boost in loan disbursement volume and reached operational profitability by the end of December 2023 — giving the management the confidence to consider a shareholder “liquidity event” like an IPO for the fintech, although likely not in 2024.
Backed by investors such as AC Ventures, Credit Saison, Quona Capital, and Saratoga, JULO is committed to enhancing the accessibility of financial services across Indonesia. The firm boasts an innovative credit underwriting approach, leveraging extensive behavioral data, and has been instrumental in successfully introducing virtual credit card offerings aimed at Indonesia’s middle-income segment.
Throughout 2023, JULO witnessed a nearly three-quarters (73%) increase in revenue and issued more than US$454 million in loans, cumulating to around US$1 billion in loans since its founding in 2016. It also boasts a retention rate exceeding 70% per cohort, leading to lower loan acquisition costs and heightened operational efficiency.
Expansion efforts have seen JULO collaborate with key financial players like Credit Saison, Bank Sampoerna, and Superbank, broadening its impact on Indonesia’s middle-income consumer base.
Ankur Mehrotra
Ankur Mehrotra, the Group President of JULO, stated that,
“Our key financial goal is to generate sustainable profitability for our shareholders and provide a liquidity event such as an IPO down the road. We believe that we are on the right track as we optimise our core product, manage our risk efficiently through continued investment and attention to risk management, and further diversify our product portfolio, ultimately becoming a fully integrated financial service platform.”
Featured image creedit: Edited from Freepik
