Klarna Takes a Major Step Towards Going Public
Swedish Payments Giant Files for IPO
Klarna, the renowned “buy now, pay later” company, has officially filed its initial public offering (IPO) documents with the U.S. Securities and Exchange Commission. While the number of shares to be offered and the price range remain undetermined, analysts estimate the company’s value to be around $15 billion.
A Rollercoaster Ride of Valuations
At its peak during the pandemic, Klarna’s valuation soared to $46 billion in a funding round led by SoftBank’s Vision Fund 2. However, the company took a significant hit in its most recent primary fundraising round, with its valuation dropping to $6.7 billion.
High-Profile Shareholders
Klarna’s impressive roster of shareholders includes major venture capital firms like Sequoia Capital and Atomico, in addition to SoftBank.
The Risk of Losing Talent
CEO Sebastian Siemiatkowski has expressed concerns about unfavorable rules in Europe regarding employee stock options, which could lead to talent being poached by U.S. tech giants like Google, Apple, and Meta.
A Long-Awaited IPO
Plans for an IPO have been in the works for some time, with Siemiatkowski hinting at a possible 2024 listing. In August, Klarna reported a profit in the first half of the year, bringing it closer to its highly anticipated stock market debut.
A Blow to European Stock Exchanges
Klarna’s decision to list in New York represents a significant blow to European stock exchanges, which have been trying to attract local tech giants to list at home.
Why the U.S. Listing?
Siemiatkowski had previously considered listing in London, but ultimately chose the U.S. due to its high-growth potential and desire for increased brand visibility.
What’s Next?
As Klarna takes this major step towards going public, the world waits with bated breath to see how the company will fare in the competitive fintech landscape.
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