FinTechs Cautious About Going Public Despite Klarna IPO
Swedish payments group Klarna is planning an initial public offering (IPO) for next year.
However, many of its FinTech compatriots aren’t ready to jump on the IPO bandwagon, CNBC reported Tuesday (Nov. 19).
For example, Hiroki Takeuchi, CEO of online payments startup GoCardless, said last week that his company, which was last valued at over $2 billion, isn’t ready to go public. He said he sees an IPO as more of a milestone on a longer journey, not a destination, according to the report.
“The markets have been challenging over the last few years,” Takeuchi said, per the report.
He said the company is focused on building a better business and “the rest will follow” if the company accomplishes that goal, the report said.
Cross-border payments provider Airwallex is also not ready to list, co-founder Lucy Liu said, according to the report. Airwallex is focused more on its performance as a solver of cross-border payments friction. An IPO is among the company’s goals, but not the ultimate milestone.
Liu pointed to Airwallex co-founder and CEO Jack Zhang’s forecast that the company would be “IPO-ready” by 2026, the report said. The company is valued at $5.6 billion and is aiming for a $6 billion valuation in a new funding round.
Klarna, known for its buy now, pay later (BNPL) offering, announced last week that it confidentially submitted a draft registration statement for an IPO to the Securities and Exchange Commission (SEC).
The company did not specify a date for its IPO, saying: “The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions.”
However, a report last week by Bloomberg said the company is looking to go public in New York in the first half of 2025. The company is asking banks to submit pitches for junior roles in its share sale.
Klarna released half-year earnings in August showing revenues up 27% and its adjusted profits climbing to $66 million, versus an adjusted loss of $45 million during the same period last year.
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