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Profitable Klarna files for a potentially blockbuster IPO
Klarna, a Swedish fintech company, has made its F-1 prospectus public, marking the next step in its highly anticipated U.S. initial public offering (IPO). According to Bloomberg, Klarna aims to raise at least $1 billion at a valuation of $15 billion.
The IPO has been years in the making, and it appears that Klarna is ready to make a big splash on the market. The company reported revenue of $2.8 billion for 2024, a significant increase from the $2.3 billion generated in 2023. Moreover, Klarna’s net profit soared to $21 million in 2024, an impressive turnaround from the loss of -$244 million recorded in 2023.
Klarna was founded in 2005 by CEO Sebastian Siemiatkowski and has since become a major player in the buy now, pay later financing space. After launching its operations in the United States in 2015, Klarna’s valuation skyrocketed to over $45 billion by 2021, only to plummet by an astonishing 85% to $6.5 billion when the venture capital valuation bubble burst.
In recent news, Klarna has been making waves with its internal developments, including the creation of its own AI system based on OpenAI’s ChatGPT. The company claims that this new technology allowed it to replace 700 full-time contract employees and save approximately $40 million annually. This significant cost-cutting measure enabled Klarna to reduce its workforce from 5,000 in 2023 to around 3,500 by the end of 2024.
The IPO is expected to provide more insight into the company’s future plans and strategies. While it remains unclear how many shares will be sold or at what price range, investors are likely to scrutinize Klarna’s financials and prospects ahead of the offering.
Source: https://techcrunch.com/2025/03/14/profitable-klarna-files-for-a-potentially-blockbuster-ipo/
