A Klarna IPO is on its way, considering the company’s intention to go public in 2022. Last year the Swedish fintech CEO, Sebastian Siemiatkowshi, told Bloomberg the company wasn’t considering to go public anytime soon but might consider an IPO for Klarna in 2022.
The upcoming IPO might be a way to generate funds after Klarna’s valuation dropped from $45.6 billion last year. However, Klarna still sits among the leading global payment services with a 219% growth in 2022 as compared with 2018.
Everything “Buy Now, Pay Later”: Klarna IPO overview
Klarna is an online banking service company and is currently the largest private fintech company in Europe in the BNPL industry.
Founded in 2005, the Swedish payment service company makes it easy for customers to shop products using flexible payment methods — which include a direct, four interest-free installment or a 30-day payment option.
It’s no wonder that Klarna has partnered with over 250,000 retailers and is providing services to over 90 million users in 17 countries.
Considering how far the Klarna IPO date is, the firm is yet to make official plans as it awaits the new chief financial officer (CFO), Nicholas Neglen to settle into the role.
However, other than a SPAC merger a direct listing might follow for an IPO of Klarna when the date is announced. While Klarna has not officially chosen a stock exchange to list on, it is said to be considering London. If so, Klarna would be following the steps of other global fintech companies such as Wise, Funding Circle, and Deliveroo.
Investors Prepare for Klarna IPO
Klarna generates revenue by charging partnering retailers for merchant and interchange fees. Additionally, Klarna makes money from customers’ delayed payment which usually comes in small interest amounts. The company positions itself as a safer option for people who want to avoid building a large pile of debt.
The Klarna IPO could be something to watch out for considering the company announced raising $639 million for funding in 2021. Giving Klarna’s valuation to sit at $45.6 billion last year. This makes it one of the most valuable private fintech companies in Europe, according to Tech Crunch.
Klarna also prides itself on strong support from top tech companies including Sequoia Capital (an investor since 2010), Visa, SoftBank, Commonwealth Bank of Australia, Silver Lake, Permira, and more who have continuously invested in funding over the years.
Also, Klarna has partnered with over 60,000 physical stores expanding its reach from the online space. US customers can now shop in physical stores that offer Klarna services, reported FY2020. Which is good news for anyone looking into the IPO of Klarna because this reduces the main risk for online businesses returning to street-side businesses.
However, it may be important to note that Klarna’s valuation dropped in 2020 after losing about $163 million, with research showing it hasn’t also been profitable for the last two years. At the same time there is growing competition from major tech companies including Apple, PayPal, and Amazon in the “Buy Now, Pay Later” space.
Moreover, there are concerns about the effect of reckless borrowing especially from the Gen-Zs and the millennials. And if not properly observed, it may have a bad impact on Klarna’s valuation revenue and its reputation as a whole.
How To Buy Klarna Stock
It can be beneficial to know how to buy Klarna stock or to participate in upcoming IPOs using Freedom Finance (Freedom 24 platform) even if the official Klarna IPO date hasn’t been announced. There are steps to follow to buy Klarna stock:
Register For A Freedom Finance Account:
Prepare your identity documents and documents to confirm your residential address. Usually, this process is speedy, it may take 2-3 minutes.
Fund Your Account:
To participate in any upcoming IPOs your account must be funded with the desired amount you want to apply for an IPO. In most cases, the exact Klarna’s IPO date may be announced in the last days and money deposits also take time to be processed. For that reason, it’s recommended to fund your account in advance.
Request To Participate:
When the application starts select Klarna’s IPO and click participate. Then next enter the amount you wish to invest and send your application. Also, you can withdraw your request before the book closing. The book closing begins a day before the exchange trading starts and you won’t be able to withdraw your request then.
Wait For Allocation:
To buy Klarna’s stock and to calculate the actual amount of stocks purchased during an IPO depends on supply and demand. If the demand is high you may get less than what you applied for.
Trading Starts:
When the public trading on stock exchanges begins, your purchased shares will be shown on your account and the 93-day lockdown period will start. You won’t be able to sell stock but using your trading terminal you can track their values and current growth.
Trading closes:
At the end of the lock-up period you will then be able to supervise the stock as you intend to.
