Swedish fintech firm Klarna announced a 24% increase in revenue for 2024 and debuted its paperwork for its highly anticipated U.S. stock market launch on March 14, as reported by Reuters. Following a surge in fintech listings in 2021 that later slowed down due to rising interest rates and high valuations, Klarna, known for its buy now, pay later model, refrained from disclosing the scale of its proposed offering.
Media sources speculate that Klarna may seek to raise over $1 billion with a valuation surpassing $15 billion. The buy now, pay later market is predicted to exceed $160 billion by 2032, with major retailers like Walmart, Target, and Amazon, joining forces with fintech giants Klarna, Affirm, and Block to appeal to younger consumers wary of credit.
With Klarna's revenue growing to $2.81 billion in 2024 from $2.28 billion in the previous year, the company's latest move into the IPO space aligns with a burgeoning interest in equity markets, even amidst the current stock market volatility.
Klarna reported having 93 million active users by the end of 2024, positioning it against Affirm, Klarna's rival, currently valued at approximately $15 billion. Meanwhile, competitors Stripe and Chime boast valuations of $91.5 billion and $25 billion, respectively, indicating a thriving fintech sector.
Amidst market speculation, Klarna's decision to go public represents a pivotal moment for fintech IPOs. Observers believe a successful IPO could reignite investor trust in high-growth financial technology firms, while a lukewarm reception could highlight concerns over inflated valuations and regulatory uncertainties in the industry.
Klarna, with its valuation climbing from $5.5 billion to $46.5 billion within two years and a successful track record in collaborations with global brands like Sephora, Nike, and Airbnb, is set to list on the New York Stock Exchange under the symbol "KLAR." The company has enlisted Goldman Sachs, J.P. Morgan, and Morgan Stanley as its principal underwriters.