Archive — US — techcrunch
Klarna revives IPO plans, aims to raise $1.27B
Swedish BNPL startup Klarna is reviving its IPO plans to raise up to $1.27 billion, potentially valuing the company at $14 billion. Targeting a NYSE listing under 'KLAR', Klarna plans to sell about 34.3 million shares, pricing between $35-$37. Despite previous delays due to market shifts, Klara has reported a revenue increase of 54%, though it continues to face a net loss of $53 million.
Key points
- Klarna aims to raise $1.27 billion in its IPO, potentially valuing the company at $14 billion.
- The IPO involves the sale of approximately 34.3 million shares priced between $35 and $37.
- Klarna's revenue grew by 54% in Q2, totaling $823 million, attributed to a 14% increase in gross merchandise value.
- Despite revenue growth, the company reported a net loss of $53 million, improved from $92 million the previous year.
- The IPO plans were postponed due to a drop in company valuation from $45 billion in 2021 to $6.5 billion.
- The offering is managed by major banks including Goldman Sachs, JP Morgan, and Morgan Stanley.
Why it matters
- Klarna's revival of its IPO mirrors the ongoing trends in fintech and BNPL sectors fueled by consumer behavior shifts post-pandemic.
- The 2021 venture capital valuation bubble burst had significant effects on company valuations across tech sectors.
- Klarna's growth illustrates a larger trend of digital payment solutions gaining traction in an evolving financial landscape by 2025.
Klarna's IPO represents a significant step in the BNPL sector's adaptation post-pandemic, highlighting resilience even amid broader market challenges.