Buy now, pay later lender Klarna files for U.S. IPO
Klarna filed its paperwork with the SEC on Friday to go public on the New York Stock Exchange under ticker symbol KLAR.
Klarna, a provider of buy now, pay later loans filed its IPO prospectus on Friday, and plans to go public on the New York Stock Exchange under ticker symbol KLAR.
Klarna, headquartered in Sweden, hasn't yet disclosed the number of shares to be offered or the expected price range.
The decision to go public in the U.S. deals a significant blow to European stock exchanges, which have struggled to retain homegrown tech companies. Klarna CEO Sebastian Siemiatkowski had hinted for years that a U.S. listing was more likely, citing better visibility and regulatory advantages.
Klarna is continuing to rebuild after a dramatic downturn. Once a pandemic-era darling valued at $46 billion in a SoftBank-led funding round, Klarna saw its valuation slashed by 85% in 2022, plummeting to $6.7 billion in its most recent primary fundraising. However, analysts now estimate the company's valuation in the $15 billion range, bolstered by its return to profitability in 2023.
Revenue last year increased 24% to $2.8 billion. The company's operating loss was $121 million for the year, and adjusted operating profit was $181 million, swinging from a loss of $49 million a year earlier.