The Swedish fintech titan Klarna is in discussions with investment banks for a United States initial public offering (IPO) valued at $20 billion, according to a report by Bloomberg, citing “people familiar with the matter.”
While official confirmation is pending, the company aims for a public listing as early as the third quarter of 2024.
The report indicates that discussions are ongoing, with specifics of the offering, such as valuation and timing, subject to potential changes.
Klarna’s valuation stood at $45.6 billion in 2021 but plummeted to $6.7 billion the following year due to escalating interest rates prompting investors to reconsider their support for the online lending platform.
Klarna’s intention to pursue a US IPO was not unforeseen.
Sebastian Siemiatkowski, Klarna’s CEO, had previously disclosed intentions to take the company public in the US, stating, “This is going to happen quite soon, but there are no official dates.”
Siemiatkowski highlighted the US as the prime market for Klarna’s public listing, given its status as the largest revenue-generating market with over 37 million customers.
He expressed less enthusiasm towards a European listing, noting that Sweden and the UK “are still very small compared to the US one.”
Klarna Bank AB provides buy-now-pay-later (BNPL) services to retail clients, enabling customers of any e-commerce platform to access short-term credit for their purchases.
Founded in 2005, the platform extends credit to approximately 150 million shoppers globally, handling around 2 million daily transactions across 45 countries.
In anticipation of its potential IPO, the fintech is broadening its offerings by introducing a subscription service offering exclusive benefits.
Klarna Plus, priced at $7.99 per month, was launched to diversify the company’s revenue streams.
In 2022, Klarna generated $1.85 billion in revenue with an operating income of $1.6 billion.