Ex-leader in European fintech opted for a US IPO over Europe

Klarna, a Swedish fintech firm, is in discussions with investment banks about launching an initial public offering (IPO) in the US. The IPO, expected to value the company at $20 billion, might occur in the third quarter of 2024, though timing remains subject to change, according to sources.

Previously, Klarna CEO Sebastian Siemiatkowski indicated that a US IPO could happen “fairly soon,” citing the US market’s significance in the company’s revenue stream as a key factor in the decision.

Klarna’s installment payment service for purchases at partner stores gained popularity during the pandemic. However, subsequent cost-cutting by users due to rising prices and borrowing expenses has influenced the company’s valuation. In 2019, Klarna achieved a valuation of $5.5 billion, which surged to $46 billion in 2021 before settling back to $6.7 billion.