Swedish BNPL leader Klarna has officially submitted its application to the Securities and Exchange Commission for listing its ordinary shares on the New York Stock Exchange, operating under the ticker symbol ‘KLAR’.
Goldman Sachs & Co. LLC, J.P. Morgan, and Morgan Stanley are serving as joint book-running managers for the offering. Other institutions involved include BofA Securities, Citigroup, Deutsche Bank Securities, Société Générale, and UBS Investment Bank as bookrunners, while BNP Paribas, Keefe, Bruyette & Woods, a Stifel Company, Nordea Bank Abp, Rothschild & Co, Wedbush Securities, and Wolfe | Nomura Alliance are acting as co-managers.
Key figures highlighted in the prospectus include:
– $105 billion in Gross Merchandise Volume (GMV)
– $2.8 billion in annual revenue
– $21 million in net profit, marking its first profitable year
– 93 million active consumers globally
– 675,000 merchants on the platform
The specific number of shares to be offered and the price range have not been established, but observers anticipate a capital raise around $1 billion, with a market valuation projected at $15 billion.
This valuation is significantly higher than the $6.7 billion valuation that Klarna received during a funding round in 2022, albeit well below its peak valuation of $46 billion in 2021.
Nalin Patel, PitchBook’s director of EMEA Private Capital Research, indicates that Klarna’s public offering will test investors’ appetite for fintech companies. He notes, “The company’s return to profitability and revenue growth are promising signs; however, the lower valuation compared to its 2021 peak suggests a more cautious perspective on venture capital valuations in today’s economic landscape. Klarna’s success could influence market sentiment towards other fintech firms considering public listings.”
Klarna’s ambitions in the U.S. market have received a significant boost through its collaboration with Walmart’s fintech startup, OnePay, enabling underwriting decisions for loans that range from three to 36 months, with annual interest rates ranging between 10% and 36%.
Sebastian Siemiatkowski, co-founder and CEO of Klarna, stated, “This is a game changer. Millions of people in the U.S. shop at Walmart every day — and now they can shop smarter with OnePay installment loans powered by Klarna. OnePay’s choice of Klarna as their exclusive installment loans partner at Walmart is a substantial vote of confidence in our goal to be available everywhere for everything. We’re excited to redefine the checkout experience at the world’s largest retailer — both online and in stores.”
Affirm, another BNPL provider servicing Walmart shoppers, has indicated that it “continues to be an integrated merchant partner of Walmart.”