Klarna, the Swedish buy now, pay later giant, is preparing for an initial public offering (IPO) in the U.S., having confidentially filed documents with the SEC. This move comes amid a backdrop of stricter regulations for buy now, pay later firms in the U.K., potentially impacting the market landscape. Klarna, once valued at $46 billion during a pandemic surge, has faced significant valuation drops, recently being valued at around $6.7 billion after an 85% decline in its latest fundraising round. The CEO, Sebastian Siemiatkowski, has expressed concerns about European regulations affecting talent retention against U.S. tech firms. While Klarna had previously considered a U.K. listing, the decision to pursue a U.S. IPO reflects a broader trend of European companies favoring U.S. markets for visibility and valuation. Analysts note that European exchanges are struggling to attract tech listings, highlighting a growing valuation gap between U.S. and European tech companies.
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