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Klarna IPO: Everything You Need to Know

April 20, 2023 8:30 am
Published by: Benjamin Baxter

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!

About Klarna

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.

How Does Klarna Make Money?

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 Funding Rounds and Top Investors

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:

  • On February 1, 2005, Klarna completed its first funding round (a pre-seed round), raising $60,000 from Walerud Ventures.
  • On December 1, 2007, Klarna closed its first early-stage venture (Series A - Klarna) funding round, raising $2.2 million from Investment AB Oresund and HarbourVest Partners.
  • On May 4, 2010, Klarna closed its second early-stage venture (Series B - Klarna) funding round, raising $9.0 million from multiple investors led by Sequoia Capital.
  • On December 9, 2011, Klarna closed its late-stage venture funding round (Series C - Klarna), raising around $155 million from multiple investors led by General Atlantic, DST Global, and QED Investors.
  • On March 14, 2014, a funding round under the name of (Venture Round - Klarna) raised around $90 million to $100 million from over ten investors, including Atomico, Sequoia Capital, General Atlantic, and Panorama Point Partners.
  • On August 19, 2015, Klarna closed its first secondary market round raising a whopping $2.2 billion from multiple investors, led by Wellington Management, Northzone, and Wellcome Trust.
  • On January 5, 2016, Klarna closed another Series C late-stage venture funding round, raising an undisclosed amount from Vintage Investment Partners (a single investor)
  • On July 21, 2017, Klarna completed a private equity funding round, which raised around $250 million from an undisclosed investor(s)
  • In 2018 and 2019, Klara completed various funding rounds and raised around $20 million from H&M’s venture capital (single investor) and $460 million from 9 investors led by Dragoneer Investment Group.
  • On March 1, 2021, a funding round under the name of (Venture Round - Klarna) raised $1.0 billion from 19 investors, including Visa, Sequoia Capital, Sutton Capital, Republic Capital, and Northzone.
  • On June 10, 2021, a funding round under the name of (Venture Round - Klarna) raised $636 million from 7 investors, led by SoftBank Vision Fund.
  • On July 11, 2022, a funding round under the name of (Venture Round - Klarna) raised $800 million from 7 undisclosed investors.
  • On September 30, 2022, Klarna closed an Angel funding round, raising an undisclosed amount from Vijay Shankar.

Klarna IPO Outlook

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.

Final Thoughts

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.

View The Klarna Pre-IPO Brochure

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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