Klarna, the Swedish payments company renowned for its buy now, pay later service, has taken a significant step towards going public by confidentially filing IPO documents with the SEC. This move comes amid a backdrop of fluctuating valuations; while analysts recently pegged Klarna's worth at around $15 billion, it previously soared to $46 billion during the pandemic's fintech boom. However, the company faced a steep decline, with its valuation dropping to $6.7 billion in 2022. Klarna's decision to pursue a U.S. listing marks a shift away from European stock exchanges, which have been striving to attract local tech companies. CEO Sebastian Siemiatkowski has indicated that an IPO could happen as soon as 2024, although this is contingent on market conditions. With major investors like SoftBank and Sequoia Capital backing the company, Klarna's IPO could provide a significant boost to its growth strategy, particularly in the U.S. market.
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