Opendoor Leads 9% Drop in FinTech IPO Index

A banner week — but just not in the direction investors would have hoped.

Macro-economic concerns dominated market mindsets these past several sessions, and worries about interest rates in particular — spiking sharply to the upside as the Fed put in another jumbo-sized rate hike.

To that end, the FinTech IPO Index slipped by 9.1% for the week, and now stands 44.7% lower for the year.

chart, FinTech IPO Index


In fact, there was a sole gainer in our pantheon of more than 45 names — and it was Triterras, which bucked the overall downdraft, and eked out a 2.7% positive return, with no company-specific news underpinning the boost.

Blend lost 26.9% through the past five sessions, continuing the volatility that has been seen since last month’s announcement that it had cut

Opendoor Technologies lost more than 24%, driven lower on reports that the company lost money on 42% of transactions in August as the U.S. housing market falters. We’d note that the continued decline in Opendoor shares comes as higher interest rates have driven mortgage rates to the highest levels seen in 14 years. Those soaring rates, of course, are likely to have a dampening effect on real estate-related activity, and by extension, activity across the company’s platform.

9F Group followed close behind, having given up 20.4% — and here, volatility is firmly in place as the company navigates the 180-day period wherein it must get back in compliance with Nasdaq listing rules.

Paymentus declined by 19.3%, followed by Katapult, which slipped 15.5%.

In the case of the latter company, Katapult and 1StopBedrooms said in a release that a new partnership will help consumers, “particularly those with little or no access to credit,” buy home furnishings.

Affirm lost 9.1%, where this week the buy now, pay later (BNPL) player announced a partnership with designer fashion boutique Intermix. Intermix customers will be able to pay for their clothing purchases via installments. The partnership extends to both physical and online Intermix stores, as well as the Designer Re/Mix hub.

Shares of Robinhood lost 7% through the week as the company said that USDC would be the first stablecoin to be listed on the company’s platform. There was also volatility through the past two sessions as reports came that the Securities and Exchange Commission would not ban order for payment flows.

New PYMNTS Study: How Consumers Use Digital Banks

A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking services, just 9.3% call them their primary bank.


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