NCino, Cloud-Based Financial Services Firm, Aims To Raise $100 Million In IPO

Two months after the Covid-19 pandemic froze the IPO market, financial services software company NCino has filed for a public offering.

The Wilmington, North Carolina-based startup is seeking to raise $100 million in an IPO, it announced recently. A regulatory filing with the U.S. Securities & Exchange Commission did not disclose how many shares the company planned to sell, or at what price. The company declined to comment beyond a press release, citing SEC regulations.

The announcement comes as other tech companies are weighing up their potential futures on the public market since Covid-19 battered the economy. Some have seen great success: Shares in ZoomInfo, a cloud-based sales and marketing software firm, surged 62% on its first day of trading, making it the largest tech company debut of 2020. But other tech firms battered by the pandemic, such as Airbnb, are yet to announce whether they will proceed with planned IPOs.

Launched in 2012 by executives of North Carolina-based Live Oak Bank as a spin-off venture, nCino provides Salesforce-based software to improve loan and deposit processing, among other financial services. The company, which employs more than 900 people, has raised a total $213 million from investors including  Insight Partners, Salesforce Ventures and T. Rowe Price. Insight holds a 46.6% stake in the company, company filings show.

Led by CEO Pierre Naudé, nCino now has more than 1,100 corporate customers, mostly banks, including Bank of America and Santander, the company said in its SEC filing. In recent months, the company’s software has been used by these customers to process more than $50 billion in Paycheck Protection Program funding using its software, and handled hundreds of thousands of requests from small businesses seeking loans.

According to nCino’s SEC filing, known as an S-1, the company generated $138 million in the fiscal 2020 year, with $27.8 million in losses, up from $91.5 million revenue on $22.3 million in losses in 2019.

The company will list on the NASDAQ market under the ticker “NCNO.” The deal will be underwritten by Barclays, SunTrust Robinson Humphrey Bank of America Securities and KeyBanc Capital Markets.