Fintech
BlackRock-backed Swedish fintech startup holds off on IPO plans despite 51% profit jump: Here’s why – BlackRock (NYSE:BLK)
May 30, 2024 07:12 am | 2 minute read
27% profits every 20 days?
This is Nic Chahine’s average value with his options purchases. Don’t sell covered calls or spreads… BUY options. Most traders don’t even have a 27% win rate on buy options. It has a winning rate of 83%. Here’s how he does it.
With confidencea Swedish fintech company backed by BlackRock Inc. (NYSE:BLK) reported a 51% increase in operating profit for 2023. Despite this, CEO Johan Tjarnberg said the IPO is at least two years away.
What happened: Trustly’s 2023 revenue reached $265 million, with significant growth in the second half of the year. Transaction volumes increased by 48% during this period. Tjarnberg attributed much of this growth to the company’s U.S. operations, which expanded significantly after the merger PayWithMyBank in 2020.
However, the CEO stressed the need for more time to demonstrate the value of Trustly’s open banking technology to investors, CNBC reported on Thursday.
“We need another year or two to really demonstrate to the market that open banking is happening, it’s here,” Tjarnberg said.
Trustly’s technology allows consumers to make payments directly into merchants’ bank accounts, bypassing traditional card issuers like Mastercard and Visa. This has made it an attractive option for merchants looking to reduce transaction fees.
Trustly is majority owned by a venture capital firm Nordic capitalwith other significant stakeholders, including Alfven and Didrikson and Black Rock. It is used by over 9,000 merchants worldwide, including Facebook, Alibaba, PayPal, eBay, AND Lyft.
Because matter: The timing of Trustly’s IPO is affected by several factors. The imminent American presidential elections in 2024 is expected to have a significant impact on the IPO market. Historically, election years have seen a slowdown in IPO activity due to market uncertainties and investor caution.
Furthermore, the banking sector is undergoing rapid transformation driven by technological advancements. According to Moody’s Analytics, the the banking sector is the one that will benefit the most from the development of generative AI. This technological shift highlights the importance of innovation in fintech, making Trustly’s open banking technology particularly relevant.
Image: Shutterstock/ StockEU
This story was generated using Benzinga Neuro and modified by Pooja Rajkumari
27% profits every 20 days?
This is Nic Chahine’s average value with his options purchases. Don’t sell covered calls or spreads… BUY options. Most traders don’t even have a 27% win rate on buy options. It has a winning rate of 83%. Here’s how he does it.
ENTER TO WIN $500 IN STOCKS OR CRYPTO
Enter your email and you’ll also receive Benzinga’s latest morning update AND a free $30 gift card and more!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.