BNPL player Klarna to file US$1b US IPO: Bloomberg

The news: Buy-now-pay-later (BNPL) business Klarna is seeking to raise at least USD1 billion ($1.58 billion) in a US initial public offering and is on track to file publicly in the coming week, according to sources cited by Bloomberg.

The numbers: Klarna is aiming for a USD15 billion valuation when it lists on the New York Stock Exchange (NYSE). The company’s valuation has varied significantly in the past five years, hitting a high of USD45.6 billion in 2021, before dropping to USD6.7 billion in 2022.

The context: The company, originally founded in Stockholm, Sweden, filed for an IPO with the US Securities and Exchange Commission in November, and has been undergoing a reorganisation to focus on payment partners and AI ahead of the IPO.

It is also selling off certain business arms as part of the refocus, having sold its Checkout payments unit for USD520 million in June last year to remove friction with its partners Adyen and Stripe, “creating a simple relationship to all partners without the PSP [payment service provider] vs Checkout conflict.”