The Johannesburg Stock Exchange in Johannesburg, South Africa. AI-powered fintech firm Optasia Group rose in its debut on the Johannesburg bourse that marked South Africa’s biggest initial public offering this year. Most Read from Bloomberg The stock opened at 20.75 rand Tuesday and was at 19.71 rand by 11:22 a.m., giving the Dubai-based firm a market value of 24.3 billion rand ($1.4 billion). Optasia placed shares at 19 rand apiece last week. “An African company listing on an African exchange was just ...

Core Insights - Both DAVE and Sezzle are prominent fintech companies focusing on consumer payments and banking alternatives, with DAVE specializing in cash advances and Sezzle offering interest-free installment plans [1] Sezzle Analysis - Sezzle's financial performance in Q2 2025 showed a record year-over-year gross merchandise volume (GMV) increase of 74.2% to $927 million, leading to a 76.4% year-over-year revenue growth [3][10] - The rise in GMV was supported by a 13.7% sequential increase in Monthly On-Demand & Subscribers (MODS) and a 62.6% year-over-year increase in transactions [3] - Sezzle's marketing expenditure surged by 780% year-over-year, resulting in a 116.1% increase in operating income and a 52% growth in monthly active users [5] - The launch of Sezzle Balance has enhanced user engagement and diversified revenue streams, indicating a positive growth outlook [6] - The consensus estimate for Sezzle's 2025 sales is $442.1 million, reflecting a 63.1% year-over-year increase, with earnings expected to rise by 77.7% to $3.27 per share [13] DAVE Analysis - DAVE's membership base grew by 722,000 in Q2 2025, leading to a 16% year-over-year increase in monthly transacting members [7] - The company reported a 64% year-over-year revenue increase, with adjusted EBITDA rising 236% to $50.9 million [8][10] - ExtraCash originations increased by 27% year-over-year, although the 28-day delinquency rate rose to 2.4%, up 900 basis points from the previous year [9] - The consensus estimate for DAVE's 2025 sales is $511.9 million, indicating a 47.5% year-over-year growth, with earnings projected to increase by 98.3% to $10.39 per share [12] Valuation Comparison - Sezzle is trading at a forward price/earnings ratio of 21.56X, slightly below its 12-month median of 22.59X, suggesting it is undervalued [14] - DAVE's forward price/earnings ratio is 19.48X, significantly lower than its 12-month median of 30.08X, indicating a discounted valuation compared to Sezzle [14] Market Outlook - Sezzle's strong GMV growth and user engagement metrics support a positive growth narrative, making it a buy opportunity [16][17] - DAVE faces challenges from rising credit default risks and intense competition, which may hinder its growth trajectory [18]