Klarna looking to go public next year as BNPL comes under scrutiny

Karthik Subramanian

Klarna, the Swedish-based buy-now-pay-later (BNPL) startup, has said that it does not plan to go public this year but could go in for an IPO in 2022 as the competition in the BNPL space heats up.

klarna

The BNPL space has been growing explosively over the last few months with companies like Klarna receiving massive investments as the investors also realize the potential of this field as the mindset of the users has been changed forever by the pandemic and the users are more risk-averse than they were earlier. So, the users prefer to span out their payments through installments rather than trying to go for single large payments for their purchases. This investor interest has helped Klarna to be valued at over $45 billion.

“We want to challenge traditional banking incumbents, that would apply to everything we do and would include also a listing,” Siemiatkowski said, “It’s more plausible to think that an IPO can happen, but we don’t have any immediate plans and aren’t working on this right now.”

The company has been growing across Europe as it has entered Poland recently with a tie-up with the platform of H&M as the BNPL industry comes under increasing scrutiny. The UK wants to regulate and control the BNPL space which would obviously lead to a tightening of controls, which companies like Klarna wouldn’t want.

The tie-up with H&M would now help users to choose between making one-time payments for their purchases or spread out the amount over several installments. The users would be given this choice at the time of checkout. It is expected that Klarna would begin to offer this BNPL product to other eCommerce and businesses in Poland over the next few months and the company is also expected to grow its team in Warsaw. The company would be eyeing some quick growth through acquisitions and partnerships so that it can capture the BNPL space in Europe before the entry of other major players like Paypal and Apple.

Klarna has, in fact, been on an acquisition spree over the last month or so as it acquired the HERO, Stocard, and APPRL platforms during this period as it focuses on the social commerce industry. Each major entrant into the BNPL space is looking to find their own nice space within the industry so that they don’t step onto others’ toes and get into direct competition with other big players.

  • Read this next

    Podcasts, Women of the Industry

    FF Podcast delves into the rise of prop trading as Brokeree releases Prop Pulse

    In the latest FinanceFeeds Podcast, Tatiana Pilipenko discusses Prop Pulse, Brokeree Solutions’ platform for prop firms and retail brokers aiming to delve into prop trading. Offering a flat fee structure, Prop Pulse emerges as a scalable solution in an era where successful traders increasingly prefer prop firms over traditional retail brokers.

    Inside View

    Scalping or day trading?

    Among the many popular trading styles with both beginners and experienced traders are scalping, which allows you to extract small portions of profit from each price movement, and day trading, which aims to trade over a single day. In this article, you will learn what scalping and day trading are and their differences and peculiarities. Ultimately, you will learn what to look for to understand which trading style is right for you.

    Crypto Insider

    Unveiling Plasma Next: INTMAX’s Solution to Scale Ethereum with Stateless Layer

     INTMAX has launched Plasma Next on the mainnet α, a groundbreaking Layer 2 zkRollup, revealed by co-founder Leona Hioki at ETH Denver. This innovation offers scalability with constant costs per block, merging Plasma’s scalability goals with zkRollups’ security.

    Fintech

    Nuam selects Vermiculus for clearing system in Chile, Colombia, and Peru

    “We are proud to deliver a system that plays an integral role in the core of this historical merger, empowering one of Latin America’s most crucial markets with VeriClear’s state-of-the-art technology, together with our deep market expertise.”

    Retail FX

    Moomoo launches super app in Malaysia

    “As an investment platform connecting 21 million retail investors globally, we envision collaborating with exchanges, regulatory bodies, and partners in the visible future to become the gateway, connecting Malaysia’s investment products to global capital and investors.”

    Executive Moves

    FXPA elects Joe Hoffman as new Chair in its 10th anniversary

    “The opportunity to serve as Chair of the FXPA is truly an honor, and I am committed to upholding the exceptional work of a FXPA. Given the recent market fluctuations due to global tensions, inflationary pressures, shifts in monetary policy, as well as the outcome of the US election and the risk of recession, brings the potential for more FX volatility in 2024. I am dedicated to expanding the FXPA’s membership and I’m excited about collaborating with all members to echo the unified voice of the FX market.”

    Market News

    Eurozone Fights Stagnation Whilst Stock Indices Rally

    European stock markets are defying economic gloom as they continue to soar to all-time highs, showcasing resilience amidst broader economic challenges.

    Web3

    Lisk Partners with Indonesia’s Communications Ministry to Boost Web3 Startup Ecosystem

    Discover the strategic partnership between Lisk and the Indonesian Ministry of Communications and Informatics, aimed at propelling local Web3 startups to new heights through comprehensive support and education.

    Executive Moves

    Admirals appoints founder Alexander Tsikhilov as CEO

    “Striking the right balance between sourcing new talent and developing and harnessing the strength and capabilities of our current workforce, is key to achieving our vision.”

    <