PayU is contemplating a $7B IPO in '25 (TWIF 11/24)

Hello Fintech Friends,

Come join us in Palo Alto on December 4th for a panel discussion on payments with Ayo Omojola (founding member of Cash App), Justin Zhao (Visa), and Gil Akos (Astra).

And if you haven't yet checked out the Technology Brothers pod by Capital's Jordi Hays and Soylent's John Coogan, add it to your list:

Please find another week of fintech exits and deep reads below.

(👍👎 Have feedback for us? Let us know!)

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📖 Reads of the Week

☯️ Exits

💻 IPOs & SPACs

Software company ServiceTitan filed for an IPO on the Nasdaq under the ticker "TTAN". Founded in 2013, it develops end-to-end software for home service industries like HVAC, plumbing, and electrical services. The company reported $348 million in revenue for the first half of 2024, reflecting a 26% increase year-over-year, but also incurred a $92 million net loss. It was last valued at $9.5 billion in 2021. (For more details, see Alex Clayton's great S-1 breakdown here.)
Prosus, a Netherlands-based investment firm, is considering an IPO for its fintech arm, PayU, at a valuation from $5 to $7 billion. This decision follows the successful public listing of Swiggy, another Prosus-backed company. PayU operates in multiple markets, offering payment and credit services, and has been expanding its reach, particularly in emerging economies
FG Merger III, a fintech-focused SPAC, withdrew its $150 million IPO.

🤝 M&A - Fintech

Robinhood purchased TradePMR, a custodial and portfolio management platform for registered investment advisors, for $300 million, aiming to enhance its services for wealth management clients.
Celero Commerce acquired Precision Payments for an undisclosed amount, expanding its offerings in the payments sector.
Modulr acquired Nook, a provider of accounts payable automation, to strengthen its payment solutions for businesses.
Crypto.com bought Australian brokerage and trading firm Fintek Securities, making a strategic expansion into the securities space.
Paxos, a stablecoin issuer, agreed to acquire Membrane Finance, a Finnish fintech, to support its entry into the EU market.
SolomonEdwards acquired Dominion Advisory Group, bolstering its capabilities in financial services risk and compliance consulting.
MakeMyTrip acquired Happay, a business expense management platform, from Indian fintech Cred, as part of its broader strategy to grow in the corporate travel segment.
Brazilian fintech infrastructure provider Celcoin purchased CobranSaaS, a provider of loan and debt collection management solutions, to broaden its financial services offerings.

🏦 M&A - Bank and FinServ

Barclays is negotiating a deal to divest 80% of its stake in its merchant acquiring business, aiming to streamline its operations while maintaining some influence over the unit. The new arrangement would allow Barclays to retain a minority stake while partnering with a third-party buyer to manage the business.
Bahrain-based private equity group Investcorp and Canadian pension fund PSP Investments are buying PKF O’Connor Davies, the 25th largest accountancy firm in the US by revenue.

every fintech is going to end up partially or fully built on stables.

1. new fintechs are built on stables from scratch
2. existing fintechs will hot swap out underlying bank infra for stables

it's the third era of fintech or 'fintech 3.0' 😏 https://t.co/HW51FDhr9U
— nic carter (@nic__carter) November 17, 2024

If you're a small country that would like to be the richest per capita, buy up all the Bitcoin you can and announce adoption. You're welcome
— Naval (@naval) January 22, 2014

"Maybe Nik should start a hedge fund..."

Maybe. @NikMilanovic https://t.co/ZnPhz46gr8 pic.twitter.com/dKsRBS2vmy
— Technology Brothers (@techbrospod) November 22, 2024

There's a lot to be written about the beauty of the @ServiceTitan business model: <60 day sales, 95% GDR, 110% NDR, 21-mo paybacks, for every new $ of subscription, there's 30 cents of new usage-based (fintech) revenue.

My favorite S-1 nugget is how they measure their… pic.twitter.com/ZQVPrUqRDp
— Alex Immerman (@aleximm) November 18, 2024

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