Klarna Reportedly Targeting $15 Billion IPO Valuation
Klarna is perhaps just days away from filing for its $1 billion initial public offering (IPO).
That’s according to a report Thursday (March 6) from Bloomberg News, which said the IPO by the Swedish payments company could come as soon as next week.
Sources tell Bloomberg Klarna hopes to raise at least $1 billion, with plans to price the IPO early in April. The same sources said the company is targeting a value of more than $15 billion when it lists on the New York Stock Exchange.
Klarna declined to comment when contacted by PYMNTS.
Best known for its buy now, pay later (BNPL) offering, Klarna confidentially filed to go public with the U.S. Securities and Exchange Commission (SEC) in November of last year.
As the Bloomberg report notes, the company’s IPO plans could boost public listings for other tech firms following a years-long slump. Companies such as Chime and Zilch are also planning IPOs for this year.
As PYMNTS wrote in a report last month, Klarna’s targeted $15 billion valuation would mark an increase from the $14.6 billion valuation that had been seen as recently as the end of 2024, implied by the company’s latest funding round, and well above the $6.7 billion reached in 2022.
The company’s IPO plans come as consumers turn to pay later plans as they search for more flexible payment options.
The PYMNTS Intelligence eBook “10 Impact Statements: The 2024 Pay Later Report” found that while many financially strapped consumers use payment methods such as BNPL, pay later plans are also popular among more comfortable individuals.
“The desire for easy, budget-friendly payment options is impacting how consumers approach large and small purchases,” PYMNTS wrote earlier this week.
“Many consumers, regardless of income level, used installment plans to streamline spending and preserve their cash reserves, the eBook found. These plans were seen as an effective way to manage spending without sacrificing immediate needs.”
Meanwhile, Klarna Founder and CEO Sebastian Siemiatkowski said earlier this week that there is likely to be a consolidation of software-as-a-service (SaaS) firms as their customers, who are adopting artificial intelligence (AI), look for a “hub of knowledge.”
In a post on X, the CEO said his company has stopped using about 1,200 SaaS suppliers in favor of its own internal tech stack, though he doesn’t think all companies will follow suit.
“Will all companies do what Klarna does? I doubt it,” Siemiatkowski wrote. “On the contrary, much more likely is that we will see fewer SaaS consolidate the market, and they will do what we do and offer to others. Those are likely to be your next SaaS.”
The post Klarna Reportedly Targeting $15 Billion IPO Valuation appeared first on PYMNTS.com.