As one of the most famous names in the fintech industry, the Klarna IPO has had potential investors circling for a long time.
This leads many people to wonder about Klarna's IPO date and the company’s financial performance. In today’s article, we’ll walk you through everything you need to know about them!
Klarna, also known as “Klarna Bank AB”, is a financial tech startup that was established in 2005 in Stockholm, Sweden.
The company was founded by its current CEO, Sebastian Siemiatkowski, along with Niklas Adalberth and Victor Jacobsson.
Klarna provides a “buy now, pay later” model that facilitates purchases without charging monthly or annual subscription fees.
Over the years, Klarna expanded its operations in many European countries in addition to the United States, Canada, and Australia.
Klarna makes money through various streams. Most of the company’s revenue comes from merchant commissions, as they charge a flat fee, an interchange fee, and a variable rate fee on sales.
Klarna also incurs a special fee for some services, such as interest on financed payments. According to reports, the company’s revenue in 2021 was around $1.42 billion.
Klarna’s funding has come from a wide variety of investors and venture/capital firms in its 18 years.
According to Crunchbase, Klarna raised a total of around $4.5 billion over the course of 33 funding rounds. Here’s a breakdown of the major funding rounds and the company’s top investors:
Most successful fintech companies intend to go public to expand their capital, and Klarna is no exception to this rule.
While the Swedish payment provider is expected to have an IPO soon, the company hasn’t released any official announcements regarding its IPO plans yet.
As previously established, Klarna’s valuation has changed dramatically over the years. In 2021, Klarna was valued at around $45 billion after securing around $1.63 billion in funding rounds during that year.
However, one year later, the Klarna valuation dropped by 85% to around $6.7 billion shortly after securing $800 million in funding rounds.
This massive valuation drop is likely the main reason why the IPO plans are on hold for the time being. Investors wishing to acquire Klarna stock will have to wait or try to acquire Klarna Pre-IPO shares.
eToro will make the Klarna IPO available to you as early as possible, sign up here to register.
This wraps it up for today’s guide, which walks you through everything you need to know about Klarna’s financial performance and IPO plans.
Klarna is one of the largest fintech startups in Europe, and at some point, it was also one of the highest-valued companies in this industry.
Yet, any plans about the company’s intentions to go public are currently in their early stages, as the company still hasn’t revealed a solid IPO date, mainly due to market and valuation instabilities.
The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions. We hold no stock or interests in any of the Companies discussed on this website/app.
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