From Discord and eToro to Stripe, these are some of the most anticipated IPOs in 2022

1 year ago 839
  • 2021 was a record-breaking year for IPOs, according to EY.
  • In 2022, more companies are expected to follow suit and capitalize on investor appetite.
  • Some of the big names include Discord, Stripe, eToro, and Klarna.

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The number of companies going public has skyrocketed over the last two years. This has been largely due to low interest rates and the impact of the pandemic.

With investor appetite looking set to continue and high valuations, there are several companies that could be ready to go public in 2022.

eToro — social trading platform 

The social trading platform is all set to debut on Wall Street via SPAC

Its IPO was initially expected in 2021 with a valuation of about $10.4 billion, but regulatory hurdles for SPACs have caused it to be delayed.

eToro wouldn't complete its SPAC merger with US SPAC Fintech Acquisition Corp by the end of 2021.

It's expected to list on the Nasdaq.

Stripe — financial services startup 

With a valuation of $95 billion, Stripe is the most anticipated IPO of 2022. The company had revenues of around $7.4 billion in 2020.

When Stripe first started operating, it serviced other startups, such as DoorDash, that were ignored by banks. As these startups grew, so did the company, showing that its business strategy has been paying off.

The company grew quietly but quickly, offering services worth hundreds of billions to companies around the world. Its customer base now includes giants like Amazon.

The pandemic helped boost their popularity, and the company's investments in artificial intelligence (AI) and machine learning helped them take on new business with ease.

Discord — chat app

Discord is an extremely popular chat application in the gaming world, with over 150 million monthly active users worldwide. Members can communicate in real time through voice calls or video chats, share media files, and talk to other members on their server.

Founders Jason Citron and Stan Vishnevskiy wanted a better communication tool to connect with their teams of developers operating remotely. They came up with a service to chat with their staff members, which eventually became Discord.

Last year, the company was in talks for a possible $10 billion acquisition by Microsoft. However, that deal fell through. Analysts now expect an IPO in 2022.

The company raised $500 million in September 2021, giving it a valuation of $15 billion.

Databricks — data engineering tool

As the world's most popular data engineering tool, Databricks provides the power and flexibility to process large volumes of structured or unstructured information with ease.

With the increasing weight of data in business, many companies are joining the use of AI and visualization tool services. 

Databricks has become an industry leader by providing sophisticated services that help companies manage databases, implement AI, and visualize data.

Companies from several countries are doing business with Databricks, and it expects revenues to increase by more than 75% to $1 billion in 2022.

Databricks recently completed a funding round of $1.6 billion, giving them a valuation of $38 billion.

InstaCart — online grocery ordering company 

The company lets you order groceries online and have them delivered when and where you want them.

Its latest funding round gives it a valuation of $39 billion.

In 2020, due to the pandemic, the demand for online groceries, and therefore the company's services, increased dramatically. 

The company has been working with Goldman Sachs to go public through a direct listing. 

It's expected to happen sometime in 2022, but it's not known exactly when.

Klarna — Swedish payment deferral fintech 

Klarna offers a buy now, pay later option for online shoppers.

Klarna hopes that the increase in revenue and users from the pandemic will translate into a successful listing.

Despite rumors of an imminent Klarna IPO, the company's CEO, Sebastian Siemiatkowski recently shared his concerns with CNBC about going public. 

"The volatility in the market right now makes me nervous to IPO to be honest," he said.

"I think it would be nice to IPO when it's a little bit more sound. And right now it doesn't feel really sound out there," he added.

Impossible Foods — plant-based food company 

The company replaces meat products with plant-based alternatives. The goal is to provide people with the taste and nutritional benefits without any negative impact on health or the environment.

Impossible Foods was founded by Stanford professor Pat Brown and its products have taken off in both home cooking and restaurants. It could be listed on the markets sometime in 2022, as it's growing rapidly

Bloomberg reported that the company is considering a $500 million financing round, which would value it at $7 billion.

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