Klarna has taken the first step towards a US stock market listing, announcing that it has confidentially filed paperwork with the Securities and Exchange Commission (SEC). The Swedish Buy Now, Pay Later (BNPL) leader says the IPO could value the company between $15 billion and $20 billion, though no details on share pricing or timing have been revealed.
The decision to list in the US comes after a turbulent few years for Klarna. In 2021, it was valued at $46 billion, making it Europe’s most valuable start-up at the time. By 2022, however, its valuation had plummeted to $6.7 billion as rising interest rates and investor caution hit fintech firms hard. Despite this, Klarna has worked to recover, narrowing its losses and positioning itself for long-term profitability.
The IPO will also highlight Klarna’s increasing focus on the US market, where it has invested heavily to compete with rivals like Affirm. The decision to list in New York, echoing Spotify’s similar move in 2018, is another reminder of Europe’s struggle to keep its tech giants closer to home.
Building Momentum with “Sign in with Klarna”
Earlier this year, Klarna made waves with the launch of “Sign in with Klarna”, a tool designed to simplify online shopping and give consumers greater control over their data. The feature allows shoppers to log in quickly, autofill their details at checkout, and access personalised offers from retailers.
This innovation has been rolled out in 23 countries, including the UK and US, and aims to solve challenges posed by the decline of third-party cookies. By giving brands access to valuable first-party data, it provides an opportunity for affiliates to enhance marketing strategies and drive conversions.
With its IPO on the horizon and tools like this gaining traction, Klarna is cementing its place at the forefront of both BNPL innovation and the wider digital sphere.
