Swedish payments Fintech Klarna revealed recently that it had confidentially filed paperwork with the US Securities and Exchange Commission (SEC) for an initial public offering (IPO).
The number of company shares to be offered as well as the price range for the proposed IPO have not yet been revealed, the BNPL Fintech stated.
In August of this year, Klarna CEO Sebastian Siemiatkowski appeared to have suggested at a possible IPO in 2025, noting that it seems “reasonable,” however also clarified that no set commitment was made at the time.
Siemiatkowski had also shared Klarna could try to move towards a U.S. listing however, it had also carefully assessed some European alternatives too.
The BNPL Fintech notably reported a first-half adjusted profit of 673 million Swedish crowns (appr. $61.74 million) in August of this year, led by job cuts and the launch of AI solutions for enhanced customer services.
Additionally, Klarna had reported first-half revenue of 13.3 billion crowns, up a significant 27% from a year prior and bolstered by revenue growth of nearly 40% in the United States.
Klarna’s adjusted profit compares with a considerable loss of 456 mln crowns just a year prior.
At the time of a valuation of $46 billion in 2021 – on the basis of a fundraising carried out then – Klarna had been unprofitable with considerably less revenue and had 7,000 workers on its payroll.
However, Bloomberg reported previously that the Fintech firm had explored or considered seeking a valuation of about $20 billion for its IPO and was in the process of selecting Goldman Sachs as the lead banking institution.
The Fintech firm, which has adopted GenAI in order to substantially lower costs and enhance productivity, presently has around 3,800 workers.
Established back in 2005 in Stockholm, Klarna reportedly provides direct payments, pay after delivery options as well as flexible instalment plans to around 85 million consumers across 575,000+ merchants in 26 different nations.
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