Traditional IPOs dominate market activity

Traditional listings – that is, initial public offerings (IPOs) – have dominated the markets in recent days. And the PYMNTS IPO / SPAC Tracker shows that business and work-related platform announcements stood at 39 so far this year, surpassed only by banks, which are at 52 over the same period.

Among the companies that made their public debut last week is Freshworks, which operates as a company that provides customer management and other services to corporate clients. The company started trading on NASDAQ this week, raising more than $ 1 billion to a valuation of $ 10 billion. The company’s price at $ 36 was above the stated range of $ 32 to $ 34.

As reported in this space, for the six-month period ended June 30, Freshworks generated revenue of $ 168.9 million, up 53% from the previous year, with a net loss of 9. $ 8 million, compared to a loss of $ 57.1 million during the same period. period in 2020.

Also Read: Freshworks Valued At $ 10 Billion In Nasdaq Debut

Elsewhere, and proof that other B2B platforms are gaining ground, Toast also went public this week, where stocks jumped more than 50% on their first trading day on the New York Stock Exchange. The company raised $ 870 million during its IPO, where initial sales of the shares reached $ 40, well above the stated price range of $ 34-36, which in turn was above a previous price range of 30 to 33 dollars.

In its file, the company said that at the end of June, it had approximately 48,000 restaurants and a total of 29,000 customers. In the past 12 months, Toast has processed over $ 38 billion in gross payments. The company has a 6% market share of the 860,000 US restaurants, Toast said.

Read more: POS ResTech Firm Toast Eyes IPO up to $ 717 million

Software consultancy Thoughtworks, which works with companies to digitize their operations, went public earlier this month, raising more than $ 344 million at a valuation of around $ 8.8 billion.

The company noted in its S-1 filing with the Securities and Exchange Commission (SEC) that “as companies struggle to keep pace with accelerating technological innovation, they must rely on service providers to drive digital transformation, creating a massive market. opportunity, ”and cited studies estimating that global spending on this digital transformation could be worth more than $ 1 trillion by 2025. The company’s revenues in the six months ended June 30 have increased nearly 25% year on year, reaching $ 498 million.

In another IPO action, identity management firm ForgeRock went public and raised $ 275 million in its own debut mid-month. “More than 1,300 organizations around the world use our platform to collectively manage more than three billion identities,” the company revealed in its S-1 case, which has helped it achieve annualized growth rates of 30% of recurring revenue in the six months ended June. , at $ 155 million.

And in the plans announced, AvidXchange Holdings, which provides a B2B billing and payment software platform to midsize businesses, filed Sept. 17 with the SEC to raise up to $ 100 million in a Initial Public Offering.

At the end of fiscal 2020, as PYMNTS reported, the company said there were over 7,000 buyers on the platform, with over 700,000 suppliers paid, cumulatively, from 2015 to 2020. Approximately 53 million transactions were processed in fiscal year 2020.

“The B2B payments market is changing rapidly and represents a significant opportunity for digital transformation,” the company said in its filing, where paper checks account for about 42% of the $ 25 trillion spent on B2B payments each year. The dossier cited PYMNTS’s own data that 46% of PA professionals would like to implement digital PA automation solutions.

See Also: AvidXchange Seeks $ 20 Billion Need For Supplier Invoice Funding

And, in nod to the fact that there was indeed activity related to PSPC, MoneyLion went public this week through a combination with Fusion. The digital finance platform said it is launching a cryptocurrency feature for buying and selling.

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