Klarna

Following Klarna’s successful IPO, speculation is mounting regarding the next fintech to go public. Stripe, valued at $91.5 billion, remains a strong contender, while Revolut, reaching a $75 billion valuation, is eyeing a US listing. Other potential IPOs include UK-based Monzo and Starling Bank, alongside Bulgaria’s Payhawk. Ripple and N26 are also possibilities, though their timelines and challenges differ. These companies are closely watching market conditions to capitalize on renewed investor interest in well-established, high-growth fintech firms.

Klarna, the BNPL giant, debuted on the NYSE with shares surging 30% above the $40 IPO price, valuing the company at $15 billion. The IPO raised $1.37 billion. CEO Sebastian Siemiatkowski likened the event to a wedding, marking a milestone but highlighting ongoing challenges. Klarna’s strategic shift to banking services, particularly in the US, faces competition from Affirm and others. The BNPL sector is intensely competitive and faces increasing regulatory scrutiny, particularly in Europe. Sequoia, an early investor, saw significant returns, while SoftBank’s later investment faced valuation decline.

Klarna, the BNPL giant, priced its IPO at $40 per share, valuing the company at $15 billion. It raised $1.37 billion and will list on the NYSE as “KLAR.” The IPO reflects cautiously optimistic sentiment towards tech listings, despite economic uncertainty and competition. Klarna is expanding beyond BNPL to become a digital retail bank. While the company reported a recent net loss, revenue grew 20% year-over-year. $1.17 billion of the IPO proceeds will go to shareholders, and $200 million will go to the company.

Klarna, initially known for its BNPL model, is transitioning to a comprehensive digital bank ahead of its IPO. The IPO, expected to value Klarna at up to $14 billion, will test investor confidence in this pivot. Klarna faces the challenge of convincing investors of its neobank strategy, expanding banking services despite recent losses, while showing 20% YOY revenue growth. Its success hinges on demonstrating a path to profitability in a changing economic landscape, comparing itself with public peers like Affirm.

Klarna, the BNPL giant, is preparing for its NYSE IPO under the ticker “KLAR,” potentially raising $1.27 billion at $35-$37 per share, valuing the company up to $14 billion. Existing shareholders will offer a significant stake alongside Klarna’s new share issuance. Goldman Sachs, JP Morgan, and Morgan Stanley are joint bookrunners. Klarna’s Q2 revenue grew 20% to $823 million, but net loss widened to $53 million. The IPO marks a significant step for the fintech firm aiming to become a comprehensive financial “super app.”