Klarna, the Swedish fintech startup famous for its “buy now, pay later” model, has confidentially presented to the Securities and Exchange Commission (Sec) i papers for the 'initial public offering (Ipo) in the United States, a long-awaited and often postponed step. He reports it Bloomberg. The move makes it the largest Swedish company to go public in the U.S. since Spotify’s debut in 2018.
Klarna: From Boom to Crash, Now Aims to Relaunch with IPO
Klarna's journey, founded in 2005 from Sebastian Siemiatkowski, has been anything but straightforward. The Swedish fintech caught investors' attention when its valuation went from 5,5 billion to 46,5 billion dollars in just two years, thanks to three rounds of funding between 2020 and 2021. However, the valuation is collapsed to 6,7 billion in 2022 due to the revision of fintech companies' valuations, in response to rising interest rates and the general revision of the sector. Now, with the announcement of its IPO, Klarna is aiming for a valued between 15 and 20 billion dollars, a figure that, while signaling a recovery from the previous peak, is far from the record values of a few years ago. The company, however, seems intent on returning to growth, trying to recover ground, even if it will have to face the delicate transition of a market that has changed skin.
Why Wall Street?
Klarna's choice to focus on United States for this IPO is not a coincidence, but reflects a strategy aimed at strengthening its position on the global market. “For Klarna, this move aligns with the goal of expanding in the United States,” said Navina Rajan, senior analyst at PitchBook. “Furthermore, the reduced profitability pressure for tech companies in the U.S. could help alleviate the headaches of expansion costs,” he added. Despite the delays, Siemiatkowski had previously anticipated a U.S. IPO in 2025, calling it “a reasonable option,” although without making any definitive commitments. At the time, the fintech had also considered some European options, but the orientation toward the American market seems now decided.
When Klarna planned to go public in 2021, Siemiatkowski had also considered a direct listing, bypassing the traditional and costly IPO process. A path that, at the moment, seems to have been set aside in favor of the more traditional IPO, which allows for greater control and stronger visibility on the market.
Klarna on the Stock Exchange: The IPO that challenges Revolut and shakes up European fintechs
This IPO won't be one of many: the Swedish fintech's IPO is shaping up to be one of the most significant of the year for a European company. Even the British fintech giant Revolut, valued at $45 billion and expected to IPO in 2025, is ready to launch and will likely outperform this offering. Other Swedish companies such as Northvolt They had planned to follow the same path, but the company put its IPO plans on hold due to difficulties in raising the necessary funds to continue its operations.
