Swinging for a staggering $15B valuation, "buy now, pay later" pioneer Klarna preps for NYSE debut
Klarna, a payment platform, plans to go public on American stock exchanges.
Hangin' out in the Big Apple, Klarna – the trailblazing Swedish payment service – is stirring up a storm with its forthcoming IPO. The tech titan's Securities and Exchange Commission (SEC) filing unveils a 2021 revenue boost of about 24%, ballooning to approximately $2.8 billion (roughly €2.6 billion). Although last year saw them racking up a net loss of $244 million, their 2021 net income stood tall at $21 million.
Pump the brakes, partner: Beware of the cookie jar Protecting yourself in the digital market: Undercover sleight of hand? Klarna kick-started its journey by streamlining online shopping payments with options like the 'buy now, pay later' and 'pay later' plans. Their revenue engine hums through interest earned on delayed payments. By the end of 2021, Klarna had amassed a whopping 93 million active users[5].
Although the IPO's targeted valuation and issue size remain elusive from the prospectus, the financial whispers blew last week that Klarna sets its sights on a minimum of $1 billion in fundraising, with a valuation eclipsing the $15 billion mark[1][2][3]. Affirm, their competitor, is currently valued at $15 billion[5]. A funding round in 2021 revealed Klarna's worth skyrocketing over $45 billion[4].
Sources: CNN Business[1], ntv.de[2], Mobili.de[3], Mbo/dpa[4], Mobili.de[5]
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- Within the Community policy, it's crucial for users to understand the implications of using Klarna's 'buy now, pay later' service, especially regarding potential debts and interest earned on delayed payments.
- As Klarna gears up for its IPO in 2021, the employment policy should carefully consider the influx of jobs and opportunities that may arise, potentially attracting a diverse workforce given the startup's global presence.
- In light of Klarna's looming IPO and staggering valuation, investors might be blindly attracted to the company without fully considering the risks associated with the digital market, such as ever-changing consumer behavior and competition from brands like Affirm.
