Klarna, the Swedish fintech giant known for its buy-now, pay-later services, has filed for an initial public offering on the New York Stock Exchange, targeting a valuation of at least $15 billion. The move has generated fresh optimism across the fintech sector, particularly in the UK, where several high-growth firms are weighing the prospect of going public after a prolonged market slowdown.
The global IPO market for fintechs has been relatively muted in recent years. While 2021 saw 101 fintech companies raise nearly $297 billion, the period from 2022 to 2024 recorded a steep decline, with just 86 companies raising $32.76 billion. Klarna’s upcoming IPO is being seen as a potential turning point that could reinvigorate investor confidence and inspire more listings.
Industry analysts suggest that Klarna’s public debut could serve as a bellwether for the broader sector. James Wootton, a partner at Linklaters, noted that a high-profile and successful listing could prompt other fintechs to revisit IPO plans as a viable route for capital and expansion.
Several UK-based fintech firms, including digital banks Monzo and Starling, as well as payments platforms Zilch and Ebury, are reportedly exploring the option of going public. While none have formally announced IPO timelines, Klarna’s market entry could influence their decision-making in the months ahead.
As market conditions begin to stabilise, a successful Klarna IPO could help reset the fintech listing landscape, particularly in London, which has struggled to retain fast-growing startups in recent years. The sector will be watching closely to see whether Klarna’s offering can reignite interest in public markets and signal a broader revival in fintech investment activity.
