Swedish buy now, pay later (BNPL) startup Klarna is on its way to becoming a public company. The fintech company announced Wednesday that it has confidentially filed a draft registration statement with the U.S. Securities and Exchange Commission (SEC).
The announcement comes after a long period of time, amid a dearth of initial public offerings (IPOs) in the technology sector. Klarna's position in Europe only adds further enthusiasm to today's news.
Founded in 2005, Klarna is one of several companies in the BNPL space that allows customers to purchase goods with the promise of interest-free credit. Founded in the US in 2015, Klarna reached a hefty valuation of more than $45 billion by 2021, but this figure plummeted 85% to $6.5 billion due to a market “correction.”
However, Klarna's valuation recently rose to $14.6 billion after an investor increased its stake, according to reports.
While it remains to be seen how many shares will be offered or the price range for the IPO, today's announcement paves the way for Klarna to go public, possibly in the first half of 2025.