Klarna, Revolut and Monzo — Pick Your Winning Fintech Upstart
These IPO hopefuls have all become profitable and are growing fast, but which offers the best investment case?
Which fintech between Klarna, Revolut and Monzo offers the most compelling investment argument?
Photographers: Betty Laura Zapata and Erika Gerdemark/Bloomberg
One specializes in gathering money, another in lending it and a third in moving it around — but which of these three fast-growing fintechs offers the most compelling story to potential public investors? Monzo Bank Ltd., Klarna Group Plc and Revolut Group Ltd. are all expected to embark upon initial public offerings in the next year or two. The last of the trio looks like the best prospect — but it’s also likely to list at by far the dearest price.
All three are rapidly adding customers and revenue, and each one has become profitable. Revolut generates the strongest pretax margin, has the strongest growth and has built a broader range of income sources even if card payments and foreign exchange fees — its original transaction businesses — still contribute more than 40% of sales.