Sweden-based Klarna Bank AB has made some progress in selecting Goldman Sachs for its Initial Public Offering (IPO) in the US. According to investmentnews.com citing sources familiar with the matter, this IPO is expected next year.

This development coincides with discussions Klarna is having with investors regarding a potential sale of existing shares ahead of the IPO, as reported by Bloomberg News. While the Stockholm-based fintech firm had previously considered targeting a valuation of around USD 20 billion for the IPO, these plans are still under discussion and could be subject to change. Additional banks might also be included in the underwriting syndicate, according to the sources, who requested anonymity due to the confidential nature of the information.

It's worth noting that Both Klarna and Goldman Sachs declined to comment on the matter. Klarna's financial adjustments and strategic shifts Klarna’s private valuation peaked at USD 45.6 billion in a 2021 funding round, but this figure dropped to USD 6.7 billion in 2022 as rising interest rates impacted the lending market. In response, the company has undertaken several strategic initiatives in preparation for the IPO, including divesting non-core businesses and increasing its investment in artificial intelligence.

Notably, in June, Klarna agreed to sell its Checkout payments business for approximately USD 520 million, according to Bloomberg News. Financially, Klarna reported an adjusted profit in the first quarter, driven by a 38% increase in revenue from the US, which has become its largest market. Founded in 2005, the company currently offers payment solutions to around 150 million active customers worldwide, processing approximately 2 million transactions daily according to investmentnews.com.

In July 2024, Klarna entered a collaboration with Adobe Commerce to allow merchants to implement its BNPL services. In essence, Klarna partnered with Adobe Commerce to provide merchants with the ability to implement its Buy Now, Pay Later (BNPL) solutions and other additional payment options. As a digital commerce solution for merchants and brands, Adobe Commerce allowed them to create a more engaging shopping experience for their users, including B2B, B2C, and B2BB2C.

Currently, the company supports retailers, consumer brands, manufacturers, and wholesale distributors worldwide. For more information about Klarna, please check out their detailed profile in our dedicated, industry-specific Company Database. .