Klarna files for IPO, raising $1 billion in valuation to $15 billion, aiming for a significant milestone in its growth trajectory.
1min read Sweden's Klarna, known for its "buy now, pay later" business, is seeking to raise at least $1bn in an IPO in the US and plans to file its application as early as next week, according to sources familiar with the matter.
Klarna is planning to price its IPO in early April, the sources said. The company is targeting a valuation of more than $15bn when it lists on the New York Stock Exchange, the sources said.
The deliberations are ongoing and the details of the listing plan, including timing, are subject to change, the sources said.
According to a November statement, Klarna had filed a secret IPO application with the US Securities and Exchange Commission. The company is working with about 15 banks to go public, led by goldman, jpmorgan and morgan stanley.
Klarna's IPO, backed by Redpoint Ventures, would provide a boost to the tech industry's IPO market, which has been relatively lacklustre since tech companies raised record amounts of money in 2021. Other fintech companies, including Chime Financial Inc and Zilch Technology Ltd, are considering going public this year.
Klarna's valuation has fluctuated significantly in recent years. It reached a high of $45.6bn in a funding round in 2021, but fell to $6.7bn in a funding round the following year. Analysts estimated its implied valuation at about $14.6bn based on the value of its shares held by shareholder Chrysalis Investments Ltd last year.
Chief executive Sebastian Siemiatkowski said last month the company was exploring a move into the cryptocurrency market. On February 8, he said on the social media platform X that Klarna "will embrace crypto".