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

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading

Technology

DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.

<