Klarna filed a confidential initial public offering with the United States Securities and Exchange Commission.
Fintech firm, known for their buy now and pay later services (BNPL), hasn’t disclosed what valuation they are seeking.
Analysts estimate the value at $14.6 billion.
Investors in Klarna that are notable include SoftBank Sequoia Capital and Atomico.
Klarna is threatening to disrupt the Banking Industry
Klarna is a good investment, especially for those who are willing to invest early. It has achieved profitability already in the US.
In the first half 2024, revenue is expected to increase by 27% over last year.
Klarna currently has more than 30 million US users, however CEO Sebastian Siemiatkowski is still optimistic regarding global growth.
He highlighted in a recent CNBC interview that the AI-powered services of the company could be a disruptor for the traditional banking sector.
The confidence of Siemiatkowski is seen by many as a good sign, since company leaders are usually well-versed in their industry and business.
Klarna expands in debit sector
Klarna’s mission is “to offer better, healthier and interest-free options to consumers around the world”.
A third of the company’s current volume is debit-based.
Klarna recently introduced new features that allow users to save money on their account, earning interest rates of over 3.5%.
It is planned to launch similar services in America.
Klarna IPO is also attractive because of the wide adoption of their services. Over half of US retailers offer Klarna BNPL.
Siemiatkowski said that “US debt for retailers is very expensive.” We’re talking 20-30 basis point in Europe and 150 basis points in the US. It’s a great opportunity for companies that are used to being cost conscious.”
Rival Affirm is doing well lately
Klarna has added more than 68,000 merchants in the first six months of 2024. It also uses artificial intelligence (AI) to lower costs and improve its network.
A recent earnings report stated that “Klarna had successfully recovered its investment on the US market in just five years demonstrating the scaleability of their network.”
Affirm, a rival company, has performed well. Its stock is now trading at $55 compared with $24 per share in early August.
Affirm’s recent success shows that BNPL is still in demand, and this could be good news for Klarna’s prospects going forward as the company approaches its IPO.
The post Is it worth investing in Klarna IPO? This post may change as new information unfolds
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