Klarna, the Swedish buy-now-pay-later giant, is exploring the option of a secondary share sale as it prepares for a potential IPO in the US next year, aiming for a valuation of around $20 billion. The company has enlisted Goldman Sachs to assist in this process, which would allow current investors to sell their shares to new buyers, thereby boosting Klarna’s overall market value. Founded in 2005 by Sebastian Siemiatkowski and others, Klarna has experienced significant fluctuations in its valuation, dropping from £35.9 billion in 2021 to just £5.3 billion in 2022 amid rising interest rates and growing investor concerns. The buy-now-pay-later model has gained popularity but has also faced scrutiny over regulatory issues and the risk of customers accumulating debt. This news comes in the wake of rival fintech company Revolut's plans to sell shares and reach a £35 billion valuation, highlighting the competitive landscape in the financial technology sector.
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