Swedish buy-now-pay-later (BNPL) company Klarna is gearing up for a potential initial public offering (IPO) in the United States, possibly occurring in the first half of 2025. According to a recent report by the Financial Times, Klarna is in discussions with major financial institutions Goldman Sachs, JPMorgan Chase, and Morgan Stanley to serve as lead advisors for the anticipated listing.
In 2021, Klarna was hailed as Europe’s most valuable startup, boasting a valuation of $46 billion. However, the broader downturn in the tech sector saw its valuation drop significantly to $6.7 billion in a 2022 funding round. Despite this setback, Klarna reported promising financial performance earlier this year, showing a substantial reduction in losses. The United States has now emerged as Klarna’s largest revenue market.
CEO Sebastian Siemiatkowski has hinted at the likelihood of a US stock market debut, suggesting it could happen “quite soon.” Bloomberg reported in February that Klarna is moving forward with its IPO plans, aiming for a valuation of around $20 billion.
Founded in 2005 in Stockholm by Niklas Adalberth, Nigel Morris, and Sebastian Siemiatkowski, Klarna offers a BNPL service that enables consumers to make interest-free purchases both online and in physical stores. Over the years, Klarna has secured $4.5 billion in private funding through 32 rounds, according to private markets platform Forge Global. Key investors include Japan’s SoftBank, Bestseller Group, H&M Group Ventures, Dragoneer Investment Group, General Atlantic, Silver Lake, and Macy’s Inc.
The decision to list in the US marks a significant step for Klarna as it seeks to capitalize on the expanding BNPL market. The involvement of top-tier Wall Street banks underscores the importance and scale of the planned IPO.
As Klarna navigates these preparations, the financial world will be closely watching its progress and the impact on both its valuation and the broader BNPL industry.
Disclaimer This article is for informational purposes only and does not constitute financial, investment, or professional advice. The information provided is based on current data and reports, which are subject to change. Always consult a financial advisor for advice tailored to your specific circumstances.
