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The IPO We’ve Been Waiting For Klarna, the Swedish buy now, pay later (BNPL) leader, has officially taken steps toward a long-awaited debut by filing confidential IPO documents with the SEC. According to Klarna's announcement, the timing of the IPO will depend on market conditions and the completion of the SEC's review. It’s been a challenging period for the fintech giant, which saw its valuation plummet from $46 billion in 2021—making it Europe's most valuable start-up—to $6.7 billion in 2022 amid broader market adjustments of fintech valuations. Despite these setbacks, Klarna returned to profitability after years of significant losses driven by its U.S. expansion strategy. Klarna’s decision to list in the U.S., following in the footsteps of Spotify, highlights a trend of European companies opting for American capital markets, raising questions about Europe’s ability to retain its homegrown financial giants. Klarna's IPO is also likely to intensify scrutiny of the BNPL sector, which has drawn criticism for its potential to exacerbate consumer debt, despite being positioned as a lower-cost alternative to credit cards by CEO Sebastian Siemiatkowski. It’s a milestone for Klarna that will undoubtedly reshape discussions around fintech innovation, consumer finance, and cross-border market dynamics.

Klarna is pushing secondary share sale ahead of IPO #Klarna, the Swedish "buy now, pay later" #fintech giant, is gearing up for a major #IPO next year. In preparation, the company is exploring a secondary share sale, advised by Goldman Sachs, to determine if investors value it above its last valuation of roughly $7 billion. This potential sale could see Klarna valued at $10 billion or more, a significant increase from its current valuation. Founded by Sebastian Siemiatkowski, Klarna once peaked at a $46 billion valuation in 2021 but faced a steep drop of 85% the following year. The secondary sale serves as a strategic move to establish a new valuation ahead of the IPO, potentially easing pressure on current shareholders. BlackRock, a major investor, has already increased the value of its Klarna shares by 59% since last year, valuing the company at $9.5 billion. This initiative comes at a critical time for Klarna, following internal conflicts and leadership changes within its board. Successfully achieving a higher valuation through the secondary sale could enhance Klarna's reputation and stability, positioning it strongly for its upcoming IPO. Klarna's move mirrors a broader trend among tech firms like British fintech Revolut, which are also preparing for IPOs and conducting secondary sales. The outcome of Klarna's secondary share sale could set a precedent in the fintech industry, influencing investor confidence and market dynamics ahead of several high-profile IPOs. The article on PYMNTS in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://lnkd.in/d4h8zqKA  - Substack: https://lnkd.in/dzfGJzmW

Klarna has confidentially submitted its IPO filing to the US Securities and Exchange Commission. As an existing investor, my analysis is that a potential IPO valuation of ~ $15 billion, reflecting the company’s current financial position and market sentiment. And CBA as the one of the biggest investors holding a 5.5% stake in Klarna, the book is also likely to be impacted. The “BNPL boom” that defined 2020/2021 has clearly waned. Moving forward, the elevated interest rate environment and shifting market sentiment are expected to be largest challenges for Klarna’s IPO in the coming year. #Klarna #BNPL #IPO #PrivateEquity #Fintech #Secondarytransaction https://lnkd.in/gn4bBySr

Swedish fintech Klarna just took a big step toward going public in the U.S. Here’s what this means for the BNPL powerhouse: ↳ IPO Amid Drought: Klarna’s upcoming IPO is a rare tech listing, drawing attention as IPO activity remains slow. Its European roots only add more intrigue to the mix. ↳ Valuation Rollercoaster: Klarna hit a $45B valuation in 2021, only to dip to $6.5B due to market shifts. Now, with renewed investor confidence, it's valued at $14.6B. ↳ BNPL Pioneer: Since launching in the U.S. in 2015, Klarna has grown into a leader, offering interest-free credit at checkout—a major player in the evolving BNPL market. What’s Next? Details on share numbers and pricing are still under wraps, but Klarna could hit the public market as soon as the first half of 2025. #IPO #FintechNews #KlarnaIPO #BNPL #Breakingnews

Klarna’s move to IPO in the U.S. says a lot about Europe’s growth ecosystem. We’re building top-tier tech leaders, but when they go public, it’s often across the Atlantic. Are we doing enough to make Europe the go-to market for our own unicorns? With the talent, innovation, and vision we have here, it’s time we made staying local the smarter choice. 🇪🇺 https://lnkd.in/gE9K2CPr #EuropeanInnovation #EUStartups

Klarna’s recent filing for a potential IPO in the US is a landmark moment for the Buy Now, Pay Later (BNPL) market and fintech at large. This move represents more than just a chance to go public — it’s a strategic play to consolidate power, expand market share, and redefine what it means to lead in this space. After weathering a steep valuation drop, the company has rebounded by focusing on profitability, diversification and innovation. AI-driven cost reductions, the Klarna Plus subscription service, and an expanded suite of financial services have turned the business into more than just a BNPL provider. It’s now a full-fledged financial ecosystem. The decision to pursue a US IPO also reflects a harsh reality for the UK. While Klarna’s move makes strategic sense given the US’s higher valuations and more favourable regulatory environment, the UK needs to address these challenges to be an attractive place for tech companies to invest. This moment isn’t just about Klarna — it’s about the future of the BNPL sector and fintech more broadly. For more on what this means, check out my latest article with Digital Frontier: https://lnkd.in/e4nqyNyj (please note: behind a paywall). What do you think this means for the competitive landscape? Will Klarna’s move spark an IPO boom, or are we looking at the start of a consolidation phase? #BNPL #Klarna #Fintech

◽ Klarna: Preparing for IPO We are pleased to share the latest news about Klarna, one of our portfolio companies. The company continues to demonstrate impressive results as it prepares for its IPO next year. ◾ Financial Achievements for 1H24 Klarna reported a 27% increase in revenue, reaching $1.2 billion. A key milestone was the shift to an operating profit of $57.2 million, a sharp contrast to the loss reported for the same period last year. Significant success was achieved in the U.S. market, where revenue grew by 38%. Klarna now serves 1 in 4 of the largest U.S. retailers, underscoring the scalability and strong growth of the company. ◽Acquisition of Laybuy Klarna recently acquired the assets of New Zealand BNPL operator Laybuy, which has established a strong presence in the UK, Australia, and New Zealand markets. This move strengthens Klarna’s international presence and opens up new opportunities for growth on the global stage. ◾Preparing for IPO Klarna is actively preparing for its IPO, planned for next year, and is reportedly in talks with Goldman Sachs to organize the offering. The company’s expected valuation in the market is approximately $20 billion. #IPO #nvb #investment

🚨 Klarna’s IPO Plans - Fintech is Back ! 🚨 The Swedish BNPL giant is making waves again with a major announcement. Here’s what we know so far: 1️⃣ IPO Filing Klarna has officially submitted draft registration docs to the SEC. The share count and price range? Still TBD. 2️⃣ Valuation Comeback Current valuation: $14.6 billion (per Chrysalis updates). IPO target: $15B-$20B, a huge rebound from $6.7B in 2022. (Still a way off its 2021 peak of $45.6B.) https://lnkd.in/eVwvVmZZ 3️⃣ Performance Highlights • Revenue is up 27% to $1.46B in H1 2024. • Losses narrowed to $30.47M. • Klarna’s largest market? The U.S. https://lnkd.in/eDPYv9hV 4️⃣ Strategic Shifts • Selling off its UK loan portfolio • Divesting Klarna Checkout • Cutting its workforce by 45% 👀 Why the U.S. listing? It follows the likes of Spotify and shows Klarna’s global ambitions. 🛑 The final IPO date depends on market conditions & SEC approval. Goldman Sachs is rumored to be the lead underwriter. What do you think of Klarna’s resurgence and IPO plans?

Klarna, one of the biggest names in "buy now, pay later," has decided to list its IPO in New York instead of London. This choice speaks volumes about where high-growth tech companies see the most opportunity. U.S. markets continue to offer larger investor pools and, frankly, better valuations. The regulatory environment in the U.S. also seems more favorable for fintechs like Klarna, where they find the flexibility to grow. London has made efforts to reform its listing rules, but Klarna’s decision signals that more aggressive changes might be needed to attract major tech IPOs. This is another tough moment for the London Stock Exchange, which is working hard post-Brexit to keep London competitive as a global financial center. Klarna’s choice is a reminder that financial hubs need to keep evolving with the needs of today’s innovators. London still has enormous potential, but to keep up with New York, it may need to speed up its reforms. #Fintech #IPO #Klarna #LondonStockExchange #NewYorkStockExchange #FinancialMarkets #TechIPO #InvestmentTrends