Following this announcement, the BNPL credit company is preparing to unveil its listing plans as soon as April 2025, as it filed for an IPO to the US Securities and Exchange Commission in November. Klarna has not yet picked a listing venue in the region of the US.
In addition, the firm did not provide any additional comments and information on the initiative. Klarna will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
According to Financial Times, Klarna has narrowed its losses in the past year and appears on track to return to annual profitability. It was regularly profitable until 2019 when it started to accept some credit losses in order to pursue its expansion in the region of the US.
Furthermore, Klarna has sought to cut costs and reduce its balance sheet ahead of an IPO, believing that artificial intelligence (AI) will allow it to almost halve its headcount. It has also been offloading loans in a drive in order to free up capital for lending growth and recently sold most of its UK portfolio to US hedge fund Elliott.
At the same time, Klarna is currently in talks to sell a US loan book as well. The discussions reportedly involved multiple banks, including Citigroup, RBC, Nordea, and Société Générale. The move represented a part of Klarna’s preparations for a highly anticipated public listing in New York, expected in the first half of 2025. The company aims to reinforce its lending capacity to attract potential IPO investors. For more information about Klarna, please check out their detailed profile in our dedicated, industry-specific Company Database.
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