Klarna Files for IPO

(Reuters) – Swedish payments group Klarna announced on Tuesday that it has confidentially filed paperwork for an initial public offering (IPO) with the U.S. Securities and Exchange Commission.

The company has not yet determined the number of shares or the price range for the proposed IPO, according to its statement.

In August, Klarna CEO Sebastian Siemiatkowski suggested a potential IPO in the next year, indicating it ‘sounds reasonable,’ but clarified that no firm commitment was made. He mentioned that a U.S. listing might be more likely, although European options were also evaluated seriously.

Klarna reported a first-half adjusted profit of 673 million Swedish crowns ($61.74 million) in August, thanks to job cuts and the implementation of artificial intelligence for customer services.

The company also shared a first-half revenue of 13.3 billion crowns, marking a 27% increase from the previous year, largely driven by a 38% revenue growth in the U.S. Their adjusted profit is notable compared to a loss of 456 million crowns a year earlier.

At its peak valuation of $46 billion in 2021, Klarna was unprofitable and had around 7,000 employees. Earlier this year, Bloomberg News reported that the company considered a valuation of about $20 billion for its IPO and was close to appointing Goldman Sachs as the lead bank.

Currently, Klarna employs approximately 3,800 people and has adopted GenAI technology to reduce costs and enhance productivity. Founded in 2005 in Stockholm, Klarna provides direct payments, pay after delivery options, and installment plans to about 85 million active consumers across more than 575,000 merchants in 26 countries, according to its website.

($1 = 10.9010 Swedish crowns)