September is typically abuzz with busy new deals and even in a pandemic, the month did not disappoint with 10 new fintech unicorns! Though we don’t have monthly historical numbers, I’m going to go out on a limb and say it was the biggest month ever in fintech unicorn births.* The list** now stands at 111 companies. And drumroll please, the total market cap is just shy of $1 TRILLION ($980B to be precise).
Here is the month in a nutshell:
- 10 new unicorns
- 4 major valuation increases among existing private unicorns
- 1 unicorn IPO
- 1 unicorn exit
Other September milestones:
- First Canadian fintech unicorn (Nuvei)
- First fintech unicorn out of Uruguay (dLocal) and first in South America outside of Brazil, which has 4
- Tinkoff joined the list at #28 with its $5.5B exit, the second-highest exit ever, $1.5B less than Credit Karma
- Brazil now tied with India for 4th most prolific fintech country (4 each) after the United States (61), China (10), and UK (9)
- One of the highest initial valuations ever, Better.com joining the list at #37 (#21 excluding public or exited companies) with a $4B valuation
- The biggest YTD climb for a private fintech company, as Chime went from $5.8 billion in December 2019 to $14.5B this month
New Unicorns in September
- $5.5B Tinkoff Bank: Russian bank (Finextra)
- $4.0B (est) Better.com: mortgage provider (The Information)
- $2.1B Nuvei (public, formerly Pivotal Payments): payment processor (Reuters)
- $1.7B Blend: mortgage platform (Finovate)
- $1.3B Sezzle (public): Alt credit platform (Financial Review)
- $1.2B dLocal: payment platform (WSJ)
- $1.2B Greenlight: Youth debit card (FintechFutures)
- $1.0B Mollie: Payment service provider (FintechFutures)
- $1.0B Neon Pagamentos: Challenger bank (Crunchbase News)
- $1.0B Trustly: Online payments (TechCrunch)
Private valuation increases (new valuation listed)
- $14.5B Chime, up $9B in 2020 (TechCrunch)
- $11.7B Robinhood, up $4B in the past 12 months (News Break)
- $10.6B Klarna, up $5B in past 12 months (TechCrunch)
- $5.0 (est) Affirm, up $2B in past 18 months (WSJ)
IPO
- $2.1B Nuvei
Previously overlooked
- $2.2B iZettle (exited May 2018)
Note:
* Even after subtracting Sezzle, Trustly, and Blend which were first reported as unicorns earlier this summer
** Our unicorn list includes any fintech startup started since 2000 that is currently valued at more than US$1 billion or has been acquired for more than $1B.