Klarna, the Swedish pioneering FinTech in the buy now, pay later (BNPL) sector, is considering top financial advisors, including Goldman Sachs, J.P. Morgan Chase, and Morgan Stanley, for its anticipated U.S. initial public offering (IPO). According to sources reported by the Financial Times, Klarna aims to list in the first half of next year, although the company has not officially commented on the IPO plans. Klarna's valuation experienced a significant drop from $46 billion in 2021 to $6.7 billion in 2022 due to rising interest rates and declining tech stock values. Despite this, Klarna's leadership believes that market conditions will improve by 2025, making it a favorable time for a public offering. The company’s co-founder and CEO, Sebastian Siemiatkowski, emphasized Klarna's readiness for an IPO, citing a sustainable business model and growth potential. The BNPL market continues to expand, with 85% of merchants reporting increased use of this payment method in online checkouts over the past year. While merchants show a preference for installment plans linked to general-purpose credit cards, consumer demand for BNPL remains strong, particularly among Generation Z and millennials, with high satisfaction rates reported by users.
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