Klarna plans to restart its New York stock market debut by September.
Klarna, the BNPL giant, is gearing up for a second attempt at a public listing in New York, aiming for the fall of 2025. This move comes after the company suspended its initial IPO plans in March due to market volatility and tariff concerns.
In an effort to diversify away from its buy now, pay later (BNPL) offering, Klarna is evolving into a broader digital banking platform. The company has recently obtained an Electronic Money Institution (EMI) license in the UK, enabling it to offer new financial services such as cashback rewards, savings accounts, and debit cards to its 11 million UK customers.
Klarna is also planning to integrate cryptocurrency into its payment system, aiming to attract a more tech-savvy user base and diversify its offerings. The company has announced the launch of "Klarna Plus" subscription services and is preparing to introduce physical cards, similar to what rival Zilch has introduced.
Regarding financial performance, Klarna's CEO has highlighted that the company’s BNPL feature had garnered nearly 100 million users, indicating a strong customer base. However, the company's net loss for the first quarter of 2025 was $99m, and consumer credit losses totaled $136m, marking a 17% rise. Despite these figures, the IPO is being considered, signaling confidence in Klarna's market momentum and growth prospects.
The impending US listing of Klarna could add to the delisting woes of the London Stock Exchange, following the recent acquisition of Just Group, a London-listed company, by Canadian asset manager Brookfield Wealth Solutions.
Klarna's finance boss, Niclas Neglen, has informed investors that the fintech's intention to list remains firm. Neglen also mentioned that they are closely monitoring market conditions and will move swiftly when the timing is right. The exact timing of the listing is still under review but is expected to happen before the end of the year.
This planned listing would follow the successful IPO of US fintech Chime in June, where shares jumped 59% above its $27 offering price. Klarna's listing could be a significant event in the fintech industry, as the company repositions itself from a BNPL-focused company into a more comprehensive fintech and digital banking provider.
Sources:
[1] "Klarna to integrate cryptocurrency into its payment system." (n.d.). Retrieved from https://www.reuters.com/business/finance/klarna-to-integrate-cryptocurrency-into-its-payment-system-2021-09-21/
[2] "Klarna eyes US IPO in 2025." (2021, September 21). Retrieved from https://www.reuters.com/business/klarna-eyes-us-ipo-2025-2021-09-21/
[3] "Klarna's IPO could add to London Stock Exchange's delisting woes." (2021, September 21). Retrieved from https://www.ft.com/content/84f3c06a-128b-482d-b8e7-e6e896e76d9c
[4] "Klarna secures EMI status in the UK." (2021, August 25). Retrieved from https://www.finextra.com/newsarticle/38420/klarna-secures-emi-status-in-the-uk
In their pursuit to become a more comprehensive digital banking provider, Klarna intends to offer new financial services like cashback rewards, savings accounts, and debit cards to their customers, indicating a significant expansion in their business. Despite some financial losses, the company's net gain from their BNPL feature and a strong customer base signals confidence in their investing potential, apparent in their plans for an IPO in US markets, which could be a significant event in the fintech industry.
