Klarna Targets $20 Billion Valuation for Potential Q3 IPO

Amidst recovery and governance resolution, Klarna eyes U.S. listing after demonstrating strong financial performance and market success.

Klarna, the Swedish FinTech company, is reportedly in discussions for a U.S. IPO valued at $20 billion, potentially happening as early as Q3 2024.
The company has shown healthy growth and smaller losses in 2023, with a gross profit of $1.1 billion and a net loss reduced to $245 million.
Investor concerns include a recent governance dispute involving top shareholder Sequoia Capital and the potential for regulatory pushback on BNPL services.
Despite a valuation drop from $45.6 billion in 2021 to $6.7 billion in 2022, Klarna's performance and the market's recovery suggest a higher IPO valuation is feasible.
Klarna's BNPL services are popular, with 150 million shoppers worldwide and significant success in the U.S., marking four consecutive profitable quarters.