Klarna, the Swedish fintech giant, made headlines recently as it submitted a 396-page document to the US Securities and Exchange Commission (SEC) on Friday. The document, however, lacked crucial details about the valuation and the size of the offering, leaving investors and industry experts curious about the potential magnitude of Klarna’s upcoming IPO.
Despite the missing information, it is evident that Klarna’s listing is poised to be one of the largest in the fintech industry in recent years. The company reported a revenue of $2.8 billion in 2024, with a modest net profit of $21 million. Its primary markets include the US ($850 million) and Germany ($755 million), with Sweden now ranking as its fourth-largest market, accounting for less than 10% of its total revenue.
On a global scale, Klarna boasts 93 million customers, marking an 11% increase from the previous year. The company processed transactions worth $105 billion in 2024, reflecting a 14% growth compared to the previous fiscal year.
Investors, including the company’s two largest shareholders, venture capital firm Sequoia and Danish billionaire Anders Holch Povlsen, are planning to sell a portion of their holdings, each looking to offload more than 10% of their ownership. Notably absent from the list of selling shareholders is Klarna’s CEO, Sebastian Siemiatkowski.
Recent reports from Afv have highlighted Klarna’s issuance of new high-voting shares, a move that has now been confirmed in the submitted documents. Siemiatkowski is the sole individual mentioned in the document as the holder of options for C-class shares, entitling the owner to 10 votes per share.
The anticipation surrounding Klarna’s IPO is palpable, with industry analysts closely monitoring the company’s trajectory and market positioning. As one of the frontrunners in the fintech space, Klarna’s listing is expected to make waves and potentially reshape the landscape of the industry.
Stay tuned for further developments as Klarna gears up for its highly anticipated IPO, poised to redefine the boundaries of fintech innovation and investment opportunities on a global scale.