Fintech Firm Global-e Looks Too $3.5 billion NASDAQ IPO
Fintech and cybersecurity startups are worth billions these days.
Israeli fintech startup Global-e is planning an initial public offering. The company submitted a revised F-1 filing with the U.S. Securities and Exchange Commission. According to the filing Global-e plans a NASDAQ IPO with which the company expects to raise $431 million, leaving it with a valuation of $3.5 billion.
According to the filing, Global-e plans to sell 15 million shares at a price of between $23 and $25 per share.
“Global-e’s mission is to make global e-commerce “border-agnostic” – Go global. Be local.”
Fintech refers to new technologies which automate the delivery and use of financial services. Fintech helps companies, business owners and consumers better manage their financial operations, processes, and lives through new specialized software and algorithms which consumers and businesses alike can use on their mobile devices and home computers.
Global-e is now the 26th Israeli startup to announce plans for a $billion plus IPO since the start of 2021. Fellow Israeli fintech startup Pagaya expects an $8 billion valuation from its IPO. later this year. And Nayax Ltd.recently announced plans for a $1 billion IPO.
Global-e is a provider of cross-border ecommerce solutions, with a proven track record of successfully enabling hundreds of leading retailers and brands across Europe, the USA and Asia, to boost their global online sales and revenues. Its Smart Cross-Border solutions helps merchants increase international conversion rates, returning customers share and customer satisfaction scores by offering shoppers in over 200 destinations worldwide an optimal shopping experience that is localized and customized per market.
Smart Cross-Border solutions support 100+ currencies, 150+ local and alternative payment methods, multi-lingual checkout, guaranteed duty and tax calculation with a pre-payment option for a guaranteed landed cost, as well as multiple shipping options at unbeatable rates and pre-paid and local returns.
Global-e’ boasts that its end-to-end solutions cover all aspects of cross-border ecommerce, including fraud and currency fluctuation hazards, duty and tax regulations as well as country restrictions and import processing, for a simplified, risk free and streamlined global expansion.
“We believe that our solution creates unique benefits for shoppers while at the same time serving the end-to-end needs of the merchants”
Since launching its platform in 2013, its business has experienced rapid growth. The company’s GMV amounted to $211 million, $382 million and $774 million in the years ended December 31, 2018, 2019 and 2020, respectively, representing an increase of 81% and 103% in the years ended December 31, 2019 and 2020, respectively.
Its revenues were $38.6 million, $65.9 million and $136.4 million in the years ended December 31, 2018, 2019 and 2020, respectively, representing an increase of 70.4% and 107.1% in the years ended December 31, 2019 and 2020, respectively. Global-e incurred net losses of $11.6 million and $7.5 million in the years ended December 31, 2018 and 2019, respectively, representing a decrease in net losses of 35% in the year ended December 31, 2019, and realized net income of $3.9 million in the year ended December 31, 2020.
Its operating efficiency and growing economies of scale have allowed our gross profit growth rates to outpace those of our revenue growth. Gross profit increased by 117% and 133% in the years ended December 31, 2019 and 2020, respectively, and our gross margin has steadily improved from 22.2% in 2018 to 28.3% in 2019 and to 31.9% in 2020.
The company states in its filing that “The merchants’ success is our success, and we aspire to become their trusted partner for international sales. The better the outcomes for merchants and the more revenue and growth they achieve, the greater our own revenue and growth”
Global-e adds that it believes that this alignment of interests with merchants is core to its long-term success. “This is evidenced by our Gross Dollar Retention Rate, which has consistently been over 98% since 2018, and our Net Dollar Retention Rate, which has typically been over 140% during the same period. These retention rates demonstrate both the strong retention we enjoy among our merchants and the strong growth of GMV from merchants that use our platform,” says the firm.