The media published information according to which the Swedish payment company Klarna may file for an initial public offering (IPO) of shares in the coming days.
Journalists on Thursday, March 6, reported that the mentioned firm’s IPO could take place as early as next week. Insiders interviewed by media representatives claim that the company intends to raise at least $1 billion. It is worth noting that some informants have stated that the IPO will not take place next week, and in early April. Also, these insiders claim that the firm is targeting a value of more than $15 billion when it lists on the New York Stock Exchange.
Klarna did not respond to a media request to comment on the mentioned information.
The company is best known for its Buy Now, Pay Later (BNPL) offer. It is known that in November, the firm confidentially filed to go public with the United States Securities and Exchange Commission (SEC).
The media notes that Klarna’s IPO plans may boost the public listings of other technology companies after a multi-year slump. Firms such as Chime and Zilch are also planning IPOs in the current year.
It is worth mentioning that at the end of 2024, the valuation of Klarna was fixed at the $14.6 billion mark, implied by the company’s latest funding round. In 2022, the corresponding figure was $6.7 billion. The new target is more than significantly higher than the mentioned reading.
Klarna’s IPO-related plans are nearing implementation at a time when there is an increase in the number of consumers who turn to pay later plans as they are interested in accessing more flexible payment options.
Among those who use BNPL solutions, many have previously encountered financial difficulties, which led to the choice of the appropriate service. However, there are many comfortable individuals among the consumers of the mentioned offers.
The desire for simple and economical payment methods is a factor that determines the consumer’s approach to making large and small purchases. Many clients of fintech companies, regardless of income level, used installment plans to streamline spending and preserve their cash reserves. These plans were perceived by the consumer audience as an effective way to manage spending without sacrificing immediate needs.
Klarna is working on the listing with about 15 banks led by Goldman Sachs Group, JPMorgan Chase & Co., and Morgan Stanley.
The company’s chief executive officer Sebastian Siemiatkowski said last month that the firm was exploring the possibility of an expansion into the cryptocurrency market. Also in February, he noted that Klarna will embrace digital currency.
The firm was founded 20 years ago in Stockholm. In 2023, Klarna began setting up a new United Kingdom holding company in preparation for an eventual IPO. Since then, the firm has reduced some businesses and focused on payment partners and investments in artificial intelligence. The company agreed to divest its Checkout payment business for about $520 million. Klarna also snapped up Laybuy, a BNPL service provider in New Zealand.
As we have reported earlier, Klarna CEO Says SaaS Companies to Consolidate as Customers Seek Hub of Knowledge.
