Key Takeaways:
- Klarna’s IPO, expected in April, could be a major signal for fintechs considering public listings.
- UK fintechs like Monzo and Starling are watching closely, weighing their IPO timing.
- The choice between listing in the U.S. or London remains a key debate for fintech startups.
After a few tough years for fintech companies, Klarna is stepping up with its highly anticipated U.S. public offering (IPO) coming April 2025. The Stockholm-based buy-now-pay-later giant (BNPL), which was once valued at $45.6 billion, is making a second attempt at going public with a valuation of roughly $15 billion this time around.
With Fintech listings in decline since 2022, Klarna’s move may reignite investor confidence and serve as an inspiration for other fintechs to take the leap.
A Tough Few Years for Fintech IPOs
A few years ago, fintech companies were on a huge run. In 2021, 101 fintech firms raised nearly $297 billion through IPOs. But now economic currents have changed and from 2022 to 2024 just 86 companies managed to raise a fraction of that, just $32.76 billion.
Rising interest rates and a slowing economy has made a lot of firms shelve their IPO plans. In 2022, Klarna itself had to lower its valuation to $6.7 billion, a dramatic drop from its pandemic-era peak.
Now, Klarna is back in the game. If its IPO goes well, it could serve as a precious confidence boost for other fintechs that have been waiting for the right moment to go public.
“A successful Klarna IPO could be a game-changer,” says Tim Levene, CEO of fintech investment fund Augmentum. “Many companies are watching closely, hoping it paves the way for others.”
Who’s Next in Line?
Several big names in the fintech world are weighing their own public debuts. UK-based challenger banks Monzo and Starling, as well as payments companies Zilch and Ebury, are among those keeping a close eye on market conditions.
Philip Belamant, CEO of Zilch, has hinted that the company might go public sometime in 2026.
Meanwhile Ebury, which is majority owned by Banco Santander, is gearing up to go public very soon by June. They target a valuation around £2 billion.
Despite the rising excitement around fintechs, not everyone is rushing to file an IPO. Some, like Revolut, are choosing to wait and let growth guide it rather than have a set firm timeline for an IPO.
A spokesperson for the UK’s highest-valued startup said the company is focusing on growth rather than setting a firm IPO timeline. “Our priority is expanding our business, building new products, and improving services for our growing customer base.
London vs. New York: The Battle for Fintech Listings
Klama’s decision to list in the U.S. rather than its home region is likely to fuel ongoing debate about where fintech companies should go public.
The London Stock Exchange has been actively courting fintech companies, including Zilch, in an effort to attract more high-profile tech listings. But many companies, including Monzo, are weighing their options between London and New York, with no final decision yet.
For now, the fintech world is watching Klarna closely. If Klarna succeeded on this IPO, it could open the floodgates for a new wave of public listings. However, if it slips up, it is likely fintech players will remain a little bit more hesitant for a while.
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