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Fintech IPOs stalled after 2021

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BNPL market expected o hit $160 billion by 2032

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Klarna can reportedly raise over $1 billion in US IPO

(Adds context and background on IPO, BNPL markets throughout)

March 14 (Reuters) - Swedish fintech company Klarna on

Friday reported a 24% surge in 2024 revenue, as the buy now, pay

later pioneer made public its paperwork for a long-awaited stock

market debut in the U.S.

Fintech listings soared in 2021 but lost momentum due to

rising interest rates and steep valuations. But with risk

appetite in equity markets slowly picking up, several companies

that had shelved their listing plan are eyeing a comeback.

Klarna, which reshaped online shopping by pioneering the

short-term financing model, did not disclose the size of its

proposed offering.

Media reports suggest it could aim to raise more than $1

billion at a valuation exceeding $15 billion.

The BNPL market is projected to surpass $160 billion by

2032, with retailers such as Walmart, Target and Amazon joining

fintech firms such as Klarna, Affirm and Block to attract

younger, credit-averse shoppers.

Klarna's revenue grew to $2.81 billion in the year ended

Dec. 31 compared with $2.28 billion a year ago. It earned $21

million, or 1 cent per share compared with a loss of $244

million, or 69 cents per share, a year ago.

The company's latest step comes as stock market volatility,

driven by renewed recession fears and uncertainty over President

Donald Trump's tariffs, threatens to stall a recovery in the IPO

market.

It had 93 million active customers on its platform as of

2024 end, according to the IPO filing. Klarna's rival Affirm

currently commands a valuation of roughly $15 billion.

U.S. fintech rivals Stripe and Chime were last valued at

$91.5 billion and $25 billion, respectively, in a tender offer

and private funding round.

Both companies are reportedly preparing for IPOs.

END TO IPO WAIT

For years, Klarna's likely stock market debut has been the

subject of intense speculation, with previous plans fizzling out

amid volatile market conditions and shifting investor sentiment.

Its decision to go public now comes as a key test for

fintech IPO appetite, following a period of weak listings and

tighter funding for private firms.

A successful offering could signal renewed investor

confidence in high-growth financial technology companies, while

a lukewarm reception may underscore concerns over lofty

valuations and regulation in the sector, analysts have said.

Klarna drew investor attention as its valuation soared from

$5.5 billion to $46.5 billion in just two years, fueled by three

funding rounds between mid-2020 and 2021.

CEO Sebastian Siemiatkowski had considered a direct listing

- a route that avoids selling new shares and the costs of a

traditional IPO - in 2021.

But, the Sequoia Capital-backed company shelved the plan and

instead raised funds at a sharply reduced $6.7 billion

valuation.

The company has partnered with major global brands,

including cosmetics retailer Sephora, sporting goods giant Nike ( NKE )

, and rental booking platform Airbnb ( ABNB ).

It expects to trade on the New York Stock Exchange under the

ticker symbol "KLAR." Goldman Sachs, J.P. Morgan and Morgan

Stanley are the lead underwriters.

(Reporting by Arasu Kannagi Basil and Manya Saini in Bengaluru;

Editing by Sriraj Kalluvila and Arun Koyyur)