Better.com had an underwhelming debut on the Nasdaq after going public, with its share price falling by 93%. It went public through a SPAC merger and faced challenges due to rising interest rates and layoffs.
Facts
- Better.com’s share price fell around 93% on Thursday after going public.
- The New York-based digital mortgage lender went public through a SPAC merger with Aurora Acquisition Corp., trading as Better Home & Finance Holding on the Nasdaq.
- Shares were trading at over $17 on Wednesday but dropped to $1.15 by market close on Thursday.
- Better.com announced its SPAC merger plans in May 2021 but delayed the move.
- CEO Vishal Garg believes their technology, powered by Tinman, will drive long-term growth when interest rates normalize. They have $560 million in additional capital.
- Better.com, founded in 2016, aimed to provide quick access to home loans and reached a valuation of $7.7 billion during the pandemic.
- Rising interest rates and reduced mortgage demand negatively impacted the company.
- CEO Garg faced backlash for laying off 900 employees via a Zoom call in December 2021.
- Earlier in the year, Better.com announced layoffs of more than 3,000 staff due to challenges in the residential real estate market.
