If you’ve been anticipating the Klarna Stock IPO, this is good news for you; The fintech business has made its plan to go public known. Additionally, investors are getting ready for the listing of the Klarna shares later this year.
About the Business.
In order to make online payments simpler for customers and merchants, three Swedish business partners launched Klarna in 2005. Customers who use the service have the option to “buy now, pay later.” Through the Klarna app, customers can access the platform at any U.S. retailer. Additionally, customers can use Klarna directly on the websites of participating retailers.
Four payments are expected every two weeks as part of Klarna’s flexible payment installment plan. To the advantage of customers, there’s an opportunity to choose a 30-day “trial period” before completing payments. Financing for the short period is interest-free. But for larger items that would require interest payments, Klarna also provides 6- to 36-month financing options.
Customers who don’t want to use a credit card or don’t want to pay the whole amount up in advance can make use Klarna.
Klarna has 90 million active users, and they processed two million transactions per day. On more than 250,000 merchant websites, customers can use Klarna to handle payments.
What’s the Stand of the Klarna Stock IPO in the Buy Now Pay Later Market?
Klarna has a lot of competition in the “buy now, pay later service.” Well-known rival businesses include Sezzle, Affirm, and Afterpay. Nevertheless, with a valuation of nearly $46 billion, Klarna is among the market leaders. Sezzle’s market capitalization is roughly $1 billion, Affirm is close to $20 billion, and Afterpay is roughly $39 billion, for comparison.
Although Klarna is leading in the buy now, pay later service, it’s still a newbie in the online payment space when compared to market leaders like PayPal, Apple, and Stripe. These companies are not relenting in making moves; From Paypal’s new introduction of the Pay in 4 service – an almost comparable feature to Klarna’s service to Apple’s plans of collaborating with Goldman Sachs to introduce its own buy now, pay later option, and Stripe’s partnership with Afterpay to provide services to Stripe merchants.
Plans for Company Expansion Indicate an IPO for Klarna.
Klarna reported in June 2021 that it has raised $639 million in a fundraising round. resulting in a $45.6 billion post-funding valuation for the business. According to the estimate, Klarna is the second-most valuable private fintech company globally and the highest-valued in Europe.
Over the last year, Klarna has grown steadily. The business received $1 billion in capital in February, valuing itself at $31 billion. The valuation was thrice what Klarna was valued at in September 2020 ($10.7 billion). However, the business hasn’t made a profit in the last two years. Let’s look at this…
Despite Expansion, the Company Reports Losses.
Every successful business experience loses, once in a while. In its first 14 years, Klarna is one of the select few fintech businesses that regularly generated a profit. However, the business has reported losses for the previous two years, with a $163 million deficit in 2020.
The business made its first $1 billion in sales last year. However, the company’s expansion attempts resulted in a 50% rise in losses.
A Klarna Stock IPO may be on the horizon, according to the company’s expansion ambitions. This is what we do know:
When Should Investors Expect the Klarna Stock IPO?
In 2021, the CEO of Klarna, Siemiatkowski had hinted the public of their intentions to launch the Klarna IPO in 2022. In the next year, the Klarna IPO is anticipated.
At the time, the firm hired a new chief financial officer and announced it would wait for him to settle in before going public. Now that it’s been a year, while no official announcements have been made, a Klarna IPO in 2022 is looking likely.
Although no precise date for the Klarna Stock IPO has been given, you can come back to this page for the most recent information. Check out the most recent information on the Stripe IPO if you’re looking for more fintech IPO options.
Always do your homework before making an investment. IPOs may experience initial volatility. The value of stocks can also fluctuate quickly.