The $ 150 billion raised by IPOs in 2020 was the best since the dot-com boom era. Data from PricewaterhouseCoopers show that companies raised money through 183 traditional IPOs and more than 240 SPACs in 2020.
Here is a look at 10 companies that are expected to IPO in 2021.
Claim: Fintech Company Claim (NASDAQ: AFRM) was scheduled for an IPO in 2020 before withdrawing the offer due to huge premieres of Airbnb Inc (NASDAQ: ABNB) and DoorDash (NASDAQ: DASH).
The company was founded by Max Levchin, the co-founder of Paypal Holdings (NASDAQ: PYPL). Affirm helps 6,500 merchants and 6.2 million customers to pay for products online without a credit card.
Affirm had a gross merchandise volume of $ 4.6 billion in fiscal 2020, an increase of 77% year on year. In the first quarter of the current fiscal year, Affirm had revenues of US $ 174 million, which increased 98% year on year.
Bumble: The dating app Bumble has filed for an IPO. Reports now say that the IPO could take place on Valentine’s Day in 2021.
The company can be valued between $ 6 and $ 8 billion. Bumble was launched by Tinder co-founder Whitney Wolfe Herd.
Bumble is different from many dating apps in that it only allows women to take the first step. The application has more than 100 million registered users and has seen the number of users grow by more than 250% in the past two years.
Blackstone Group (NYSE: BX) is Bumble’s biggest sponsor.
Related link: 10 of the best performing IPOs of 2020
Coinbase: With Bitcoin prices at all-time highs and cryptocurrency a trend topic in 2020, Coinbase has announced IPO plans. This would mark the first major U.S. cryptocurrency exchange to go public and could be a historic victory in making the cryptocurrency more popular.
The company’s last fundraising was in 2018, with a valuation of $ 8 billion. The company considered a direct listing, was an IPO rumor and was linked to SPACs throughout 2020.
Coinbase can be valued at more than $ 20 billion with its 2021 IPO. One of the company’s first investors was Banco Bilbao Vizcaya (NYSE: BBVA), which began investing in 2015, when the company was valued at $ 400 million.
Instacart: The grocer delivery company Instacart is considering an IPO in 2021. The IPO can value the company at $ 30 billion.
In early 2020, Instacart was valued at $ 17.7 billion in its last round of financing.
Business soared for Instacart during the COVID-19 pandemic, similar to DoorDash.
Petco: An increase in pet ownership is expected to be another consequence of the pandemic and, consequently, a publicly traded former pet retailer Petco (NASDAQ: WOOF) plans an IPO in 2021.
The number of families with pets was expected to increase by 4% in 2020, according to the IPO request. This could lead to an additional $ 4 billion in the pet care market.
Petco’s same-store sales increased 9.6% in 2020. Sales increased 9%, to $ 3.6 billion in the first 10 months of 2020. The company reduced its net losses compared to 2018 and 2019.
The company has been working on expanding its e-commerce offerings. Rival Chewy Inc (NYSE: CHWY) performed well in 2020, with its share price rising more than 250% and a valuation of $ 40 billion. Barkbox, a tailor-made monthly subscription service for dogs, is also going public via SPAC Northern Star Acquisition Corp (NYSE: STIC).
Poshmark: Clothing retailer Poshmark has filed for an IPO which is expected in 2021.
The company had 31.7 million active users in September, including 6.2 million active buyers. In 2019, users spent an average of 27 minutes on the platform. The company accounts for 80% of its users in the millennial and generation Z age groups.
The company saw revenue increase 28% year-over-year in the first nine months of 2020, to $ 192.8 million. The company also made a profit in the second and third quarters of 2020. In 2019, the company had a net loss of $ 48.7 million.
Robinhood: The trading platform Robinhood is looking for consultants for a potential IPO in 2021. The company was one of the first to offer zero commission trading and saw the number of users increase during the pandemic.
Robinhood’s valuation is $ 11.2 billion, according to Bloomberg.
Robinhood is one of the best known brokerage brands for retail traders and could be a hot IPO with its brand familiarity for investors.
Roblox: Mobile games company Roblox (NYSE: RBLX) had planned to do the IPO in 2020 before withdrawing its offer due to the success of Airbnb and DoorDash.
In the first nine months of 2020, Roblox had daily active users of 31.1 million, an increase of 82% year on year. Revenue in the first nine months of 2020 was $ 588.7 million, an increase of 68% year on year. Third quarter revenue increased 91% year-over-year, to $ 242 million.
Roblox has been installed 447.8 million times since 2014. The company is planning to launch the game in China with a partner and co-owner. Tencent Holding (Pink: TCEHY).
The company’s latest valuation was $ 4 billion with a financing round in February, but it is expected to go public with double or more.
Tokopedia: Indonesian e-commerce company Tokopedia entered the limelight in 2020 for being linked to SPAC supported by Peter Thiel Bridgetown Holdings (NASDAQ: BTWN).
The company accelerated its IPO plans and a SPAC could be the path that Tokopedia would take.
Tokopedia is the second most valuable startup in Indonesia. The company is also the largest shareholder in Ovo, the country’s digital portfolio startup.
Tokopedia grew exponentially during the pandemic and has over 100 million active customers. The company serves 98% of Indonesia’s sub-districts.
The company could be a bet on growing e-commerce penetration and overall growth in Indonesia, Southeast Asia’s largest economy.
UiPath: CNBC reports that the robotic process automation company UiPath has filed for an IPO.
The company was valued at $ 10.2 billion in a 2020 financing round.
UiPath uses artificial intelligence to build software robots, helping companies to automate certain work processes so that employees can focus on other things.
Revenue is estimated at $ 360 million annually. The company’s more than 6,300 customers include Amazon, Bank of America and Verizon.
Disclosure: The author is long BBVA.
Photo courtesy of Petco.
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