Klarna, the Stockholm-based buy-now-pay-later company, has officially filed for an initial public offering on the New York Stock Exchange. This marks its second attempt at going public after its initial plans in 2021 were derailed by shifting market conditions. Klarna’s valuation soared to $45.6 billion at its peak but later dropped to $6.7 billion in 2022 due to economic uncertainty and rising interest rates. Now, the company is expected to be valued at least $15 billion when its shares are priced in April. The move has generated optimism among investors and industry experts, with many viewing it as a potential turning point for fintech IPOs after a period of limited activity.
The fintech sector has experienced a significant decline in public listings since 2021, but Klarna’s IPO could encourage other companies to follow suit. Challenger banks like Monzo and Starling, as well as payments firms Zilch and Ebury, are among those considering going public. The choice of the U.S. as Klarna’s listing venue has also reignited discussions about where high-growth fintech firms should debut, with London and New York vying for future listings. While some companies remain cautious due to market volatility, Klarna’s performance could influence investor confidence and shape the next wave of fintech public offerings.
