Buy-now-pay-later giant Klarna mulling bankers for 2025 IPO: report

By Steve Gelsi

Goldman Sachs, JPMorgan and Morgan Stanley are being considered to lead Klarna deal

Buy-now-pay-later specialist Klarna Holding AB is considering Goldman Sachs Group Inc., Morgan Stanley and JPMorgan for lead banking positions for a potential initial public offering for 2025, according to a report by the Financial Times.

Citing unnamed sources, the report said no final decision has been made on the IPO, which had been anticipated for years before valuations of financial technology companies took a dive in 2022.

That year, Klarna's valuation fell to $6.7 billion in a fundraising round, a fraction of its $46 billion valuation in 2021 when it was ranked as one of the most valuable startups in the world.

Reports of an initial public offering for Klarna have been bubbling up some time.

Bloomberg reported in February that Klarna was targeting an IPO valuation of about $20 billion for an IPO as early as the third quarter of 2024.

Stockholm-based Klarna was founded in 2005 by Niklas Adalberth, Nigel Morris and Sebastian Siemiatkowski. It allows customers to buy products via interest-free payments both in stores and online.

Private markets stock platform Forge Global reported that Klarna has raised $4.5 billion in private financing via 32 rounds.

Backers include Japan's Softbank (JP:9984), Bestseller Group, H&M Group Ventures, Dragoneer Investment Group, General Atlantic, Silver Lake, , Macy's Inc. (M) and others.

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-Steve Gelsi

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07-17-24 0804ET

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