Swedish Klarna has filed its long-awaited plans to go public in the United States.
The mentioned buy now, pay later (BNPL) company on Wednesday, November 13, announced that it had confidentially submitted a draft registration statement for an initial public offering (IPO) to the US Securities and Exchange Commission (SEC).
The announcement published by the firm contains information that the number of shares to be offered and the price range for the proposed offering have not yet been determined. Also, in this context, it was noted that the IPO is expected to take place after the SEC completes the review process, taking into account the market and other conditions.
Last month, Chrysalis Investments increased the value of its stake in Klarna. After that, the company’s valuation was fixed at around $14.6 billion. It is worth noting separately that Chrysalis Investments made the mentioned decision after it recorded that the value of shares of publicly-listed BNPL providers, such as PayPal and Affirm, showed growth.
At the time of the funding round in 2022, the valuation of Klarna was fixed at $6.7 billion. It is worth noting that this is a significant decrease compared to the figure of 2021, which amounted to $45.6 billion.
Chrysalis Investments suggests that the potential window for Klarna IPO seems to be in the first half of next year.
In August, the BNPL company published information about its earnings for the first six months of 2024. Klarna’s revenue for the mentioned period increased by 27%. Adjusted profits of the company for the first half of 2024 were fixed at $66 million. It is worth noting that for the same period in 2023, the firm recorded an adjusted loss of $45 million.
Klarna chief executive officer Sebastian Siemiatkowski said in August that the company’s massive global network continues to expand rapidly with millions of new consumers joining and 68,000 new merchant partners. He also noted that the firm is growing as its merchant partners grow, as evidenced by a 38% increase in revenue in the United States.
As we have reported earlier, Klarna Collaborates With John Lewis & Partners.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
