An announcement from fintech QuickFee Ltd [ASX:QFE] caused an early spike in the share price this morning.
QuickFee went public in July and raised capital to help expand across the US professional services market.
Today, QuickFee announced another step forward in the acquisition of QuickFee US.
The terms of the acquisition involve three performance milestones for the QuickFee US.
Today’s announcement revealed that the second milestone has been hit, involving contracting over 300 US firms by July 2021.
With 306 firms contracted to date, QuickFee US are about 18 months ahead of schedule.
The QuickFee share price went up almost 12% within the first half hour of trading.
Investors are clearly pleased that the company is reaching the goals laid out in their IPO.
It shows QuickFee are growing at the expected pace.
QuickFee hitting on track with growth expectations
Quickfee US appear well on track with their performance goals.
One milestone to hit was to exceed US$15 million in the aggregate value of QuickFee US loans within 24 hours of the Admission Date. This was achieved back in September.
The third and final milestone involves the aggregate value of currently held QuickFee US loans.
They want this to be in excess of US$6 million by July 2021.
This looks like it will be hit well and truly before then, based on last month’s lending results.
US lending is up 133% from this time last year, to AU$2 million.
16 new US firms signed up in October alone.
QuickFee CEO Bruce Coombes says the company has ‘a high level of confidence in the recent investment we have made in the US sales team and the contribution they will make to our continued growth’.
Four sales reps have been added to the US team since July.
The state of fintechs right now
It’s been an interesting time for the fintech sector as of late.
The RBA’s call to review ‘buy now, pay later’ platforms has put fintech leader Afterpay Touch Group Ltd [ASX:APT] in a bit of a rut in the last fortnight.
But some analysts are still bullish on APT, with price targets exceeding $40.
Meanwhile, Zip Co Ltd’s [ASX:Z1P] strategic agreement with Amazon.com.au pushed their share price up over 16% yesterday.
Zip will be the first Aussie instalment payment option available on the website.
And QuickFee are showing that their fintech niche can prove fruitful.
Their focus on professional services firms over retail customers gives QuickFee potential to work alongside Afterpay in the Aussie and US markets.
It’s definitely an interesting sector to watch and potentially be a part of.
Imogen van der Meer,
For Money Morning
PS: For our top three fintech picks, check out this free report.