Swedish Fintech Klarna to File US IPO at $15 Billion Valuation
Swedish fintech startup Klarna wants to raise about $1 billion through an initial public offering in the US. Sources close to the company say it plans an Klarna IPO filing this coming week. Yahoo Finance has reported. Although conversations on the Swedish fintech company IPO are ongoing, people close to the company say that IPO timing may change.
Fluctuating Valuation
The payment platform plans to price the IPO in April.The buy now, pay later IPO will be based on the company’s most recent valuation. Klarna’s valuation at the New York Stock Exchange has surpassed the $15 billion mark, people who are close to the Swedish fintech have said.
Klarna’s valuation has experienced wild fluctuations in recent years according to its estimates. The company’s financing hit a high of $45.6 billion after a funding round conducted in 2021. However, this financing dropped to $6.7 billion the following year. Last year, analysts projected the fintech’s valuation to be about $14.6 billion.
These projections were based on the estimated value of the stake held by one of Klarna’s shareholders, Chrysalis Investments. Last month, the company’s Chief Executive Officer Sebastian Siemiatkowski said Klarna was exploring expansion opportunities in the cryptocurrency market.
Through a social media post shared on February 8, Siemiatkowski said the fintech company would embrace cryptos.
Confidential Registration
In November, the fintech company filed a draft registration statement with the US Securities and Exchange Commission (SEC) confidentially for its upcoming IPO. The offering is expected to take place after the commission reviews the registration statement. At the time of registration, the fintech company said the offer price and the number of shares to be offered during the IPO had not been determined.
This is not the first time that Klarna has announced IPO plans. In August 2024, the Klarna unveiled two new products – a cashback offering and a personal checking account. The new products were designed to reward users for shopping through its app. The company unveiled the new products as it anticipated a $20 billion Klarna IPO.
The fintech company had reportedly launched the new products to encourage users to shift their saving and spending transactions on its platform. At the beginning of 2024, Siemiatkowski said that fintech still needed to work on several steps, but it was keen on becoming a public company in a media interview.
A Long Journey
Klarna is already working with 15 banks on its listing. According to Bloomberg, the listing will be led by JP Morgan Chase, Morgan Stanley, and Goldman Sachs. The new listing will boost Klarna’s tech IPOs that have slumped since attaining record volumes in 2021. Other fintech firms that are considering initial share sales in 2025 include Zilch Technology and Chime.
Klarna is well known for its buy now, pay later loan products. These loans allow users to make purchases then split payments into equal installments that are interest-free. Since its launch, Klarna has grown its user base to 85 million customers across the world. The company partners with 600,000 retailers.
Klarna was established two decades ago in Sweden. In 2023, the fintech company started establishing a UK holding company as part of preparing for its eventual public offering. From that time, Klarna has refocused its strategies by shedding businesses, making investments in artificial intelligence, and working with payment partners.
In the last few months, the Swedish fintech company has divested its Checkout payments units for about $520 million. The company has also parted ways with buy now, pay later service provider Laybuy in New Zealand.
