Monzo, Starling, Zilch: The fintech IPOs that could boost London
London markets have suffered a torrid couple of years, but could fintech help turn the tide?
Swedish fintech Klarna marked the latest snub to the City after it announced it was pursuing a US-listing despite hopes the firm would float in London.
This followed 88 companies leaving the London Stock Exchange (LSE) last year, including tech darling Darktrace which jumped ship after it was acquired by US private equity Thoma Bravo in April 2024.
But hope is not lost.
Numerous young fintechs are waiting in the wings and a listing from any would provide a major boost to London and its status as a fintech hub.
Z/Yen’s 37th Global Finance Centre’s Index showed London was on the cusp of taking New York’s fintech crown, and a flurry of fintech listings may not only take the Square Mile to the top of global fintech, but also re-energise the embattled LSE.
Monzo
The digital challenger bank is a staple in UK fintech and would rank among the top choices across all industries for a listing.
Monzo increased its valuation to £4.5bn in October 2024 following a secondary share sale and boasts over 10m customers.
In June 2024, the fintech’s chief executive TS Anil told Morning Wire he wished to grow the business “several times” larger before an IPO.
Anil is said to be at odds with the company’s boards over where to list, with the boss eyeing the US and the board keen to stay in the City.
Speculation of a listing mounted after the neobank appointed Tom Oldham, a former Nubank executive, as its chief financial Officer in November.
Monzo touted Oldham’s role “during a transformative period of hypergrowth and Nubank’s IPO,” which took place in New York in December 2021.
Starling
The fintech unicorn boasts gross lending over £2bn and deposits north of £5.4bn making it one of the most hotly awaited IPOs in the UK.
In 2022, Starling had its first full year of profitability after posting pre-tax profit of £32.1m.
The digital bank increased signs it was gearing up for an IPO after it began recruiting for a London-based role to work with senior management to “execute a successful IPO or other capital event”.
The job description also said it would “support the business in its steps towards its consideration of IPO readiness”.
John Mountain, the fintech’s interim chief executive, discussed a potential flotation and said whilst a location had not been confirmed, London would be a “natural home”.
Zilch
The UK-based buy now, pay later firm is expected to go public in the next 12 to 24 months after securing £150m in securitised debt financing from Deutsche Bank.
Zilch was also seen to be gearing up for a flotation after it announced plans to double its headcount over the next 18 months.
Speaking at an Innovate Finance summit in October 2024, the fintech’s chief executive Philip Belamant said: “We’re a British business. We’re born here, the headquarters is here, we’re going to be doubling the size of the staff – we’re hiring more than 400 people over the next year and a half here in the UK – and our customer base today is here.
“So we think wouldn’t it be fantastic for businesses to list here. We think that is the right thing.”
The London-based business became the fastest fintech company in Europe to obtain double unicorn status since Series A funding in November 2021.
Belamant is a co-chair of Innovate Finance’s “Unicorn Council,” which took part in a meeting with the Chancellor and fintech executives earlier this month to discuss ways to boost economic growth.
ClearScore
Counter to the bosses of rival firms, Justin Basini, the chief executive of ClearScore, has gushed over a potential London listing.
Basini told The Times the London Stock Exchange marked a “natural destination” for an IPO ahead of the company considering its options.
The fintech boss also praised the “vibrant” fintech sector in the City.
Whilst he didn’t ignore the City’s challenges, addressing the lack of “homegrown growth equity” compared to US public markets, he said UK investors were beginning to “wrap their heads around the opportunities to invest behind growth”.
The firm has operations across the UK, South Africa, Canada and Australia, with over 19 million users worldwide.
The fintech has long been tipped a ‘soonicorn,’ with it standing on the verge of a £1bn valuation.
Zopa
Digital bank Zopa cemented its unicorn status after fundraising £80m, which included money from an arm of the AP Moller conglomerate.
The London-based lender, which launched as a fully licensed bank in 2020, announced late last year it was on the hunt for new acquisitions as it looked to compete with the likes of Monzo and Starling.
Jaidev Janardana told Morning Wire in December 2024 there was “no timeline” on an IPO and it was not a “top priority”.
Whilst floating does not appear to be an imminent priority, Zopa is among the firms that have been courted by the London Stock Exchange and Treasury officials to choose London as its listing venue.
The firm struck a deal with John Lewis in October to provide personal loans of up to £35,000 directly to the retailers 23 million customers.
Any leaning towards London for a flotation would mark a major boost for the City, though the fintech remains tight-lipped over future endeavours for now.