📈 Klarna's IPO Plans
Klarna, the Swedish buy now, pay later (BNPL) company, has officially announced its plans to go public in the U.S. As of November 13, 2024, they have confidentially submitted a draft registration statement to the SEC. The company has not yet disclosed how many shares it will offer or their price range. The IPO is expected after the SEC reviews their application and depending on market conditions.
🚀 Rising Valuation
Chrysalis Investments recently boosted its stake in Klarna, which now has an implied valuation of around $14.6 billion, up from $6.7 billion in 2022. However, this is a significant decrease from its previous high of $45.6 billion in 2021. Klarna's recent valuation comes as other BNPL companies like PayPal are seeing rising share prices.
💰 Impressive Earnings
Klarna's half-year earnings report released in August showed a strong revenue increase of 27%. They announced adjusted profits of $66 million, a turnaround from an adjusted loss of $45 million the previous year. CEO Sebastian Siemiatkowski said their network continues to grow significantly, with 68,000 new merchant partners joining the platform.
🔍 Market Trends
The U.S. is Klarna's largest market, and BNPL options are becoming increasingly popular, especially among consumers facing financial challenges. Research indicates that 26% of consumers living paycheck to paycheck plan to use BNPL services in the coming year. However, increased regulatory scrutiny from agencies like the Consumer Financial Protection Bureau could impact their expansion.
Will Klarna's IPO change the BNPL landscape?
