On November 24, 2021 – Sebastian Siemiatkowski, CEO of Klarna AB, Europe's largest private fintech start-up (split payments), revealed to Swedish business newspaper Dagens Industri, that the company is better placed than ever to file for an initial public offering (IPO), but that it hasn’t filed the documents yet.
Here’s what you need to know:
- What is an IPO?
- What is Klarna?
- How to buy Klarna IPO stock? – detailed instructions.
- Klarna IPO details – Klarna IPO date, price etc.
- What brokers provide access to the Klarna IPO?
What is an IPO?
When a private company or a startup first sells its shares to the general public, this process is known as an Initial Public Offering (IPO). An IPO means that a company's ownership is transferred from private ownership to public ownership. That is why the IPO process is called "going public".
Why go public? The primary benefit of going public is easier access to capital, but there are more reasons for that. If you want to learn more - here we answered frequently asked questions about IPOs in simple terms.
What is Klarna?
Klarna is a banking company providing payment solutions to consumers and merchants. It offers direct payments, pay after delivery options, and installment plans. The company also delivers traffic acquisition, upstream marketing, payment processing, dispute resolutions, and cross-selling services for merchants.
Klarna Business Details and Financials Before IPO
The financial platform works on the BNPL (Buy Now, Pay Later) principle, which allows you to buy retail goods on credit without paying interest. Every time a user completes a transaction, the company receives a modest commission from the vendor. Klarna is also expanding its retail banking operations.
The company's current valuation is $45.6 billion - an increase of more than four times compared to last year.
During its existence, the company received $3.7 billion investment in 20 rounds of funding, of which $1.3 billion was raised in the last round of investment. In 2020, Klama reached over $1billion in annual revenue for the first time.
According to a Klarna survey, roughly one-third of respondents who make electronic purchases are willing to use the deferred payment option. 70% trust the seller more if this option is offered. According to Grand View Research, the global BNPL market, which amounted to $4.07 billion in 2020, will reach $20.4 billion in 2028, with an annual growth of 22.4%. The influence of the epidemic and the overall expansion of e-commerce are key growth factors.
Klarna is a part of The Klarna Group.
- Total active consumers: 90 000 000
- Total number of merchants: 250 000
- Number of transactions per day: 2 000 000
- Number of employees: 4 000
Klarna's pre-IPO growth
Klarna revenue was kr11.08 b in FY, 2020 which is a(37.2%) year-over-year increase from the previous period.
Klarna's revenue breakdown by business segment: 29.5% from Interest Income, 69.2% from Commission Income and 1.3% from Other
Klarna Prospectus SEC S-1 form
Klarna Prospectus S-1 form will be published here when available. Stay tuned!
Details From Klarna’s S-1 Filing
Details from Klarna’s S-1 will be published here when available. Stay tuned!
Klarna's top competitors include Stripe, WePay, Heartland Payment Systems, Adyen and Skrill.
Is Klarna Stock Publicly Traded?
No, Klarna is a privately owned company now. It belongs to founders, early investors (venture capital firms), and some employees.
Klarna's Key People
- Klarna's CEO and Board Member – Sebastian Siemiatkowski
- Klarna's Co-Founder and Owner – Victor Jacobsson
- Klarna's Chief Marketing Officer – David Sandström
- Klarna's Deputy CEO – Knut Frangsmyr
Klarna pre-IPO Investors
Klarna's top pre-IPO investors are – Sequoia Capital, Creandum, Northzone, Digital Sky Technologies, QED Investors, BlackRock, Wellington Management, Atomico, Fabrice Grinda, Dragoneer Investment Group, Visa, General Atlantic, Wellcome Trust, JaneWalerud, GIC, Panorama Point Partners, Permira, Sebastian Siemiatkowski, Snoop Dogg, GP BullHound, FJ Labs, H&M Clothing Company, IVP (Institutional Venture Partners), Victor Jacobsson, Niklas Adalberth, Investment AB Öresund, Anders Holch Povlsen, Reimann Investors, Karl Danowsky Prytz, Walerud Ventures, Första AP-fonden, Otiva, IPGL, MerianChrysalis, HMI Capital, Commonwealth Bank of Australia, WestCap Group, Silver Lake, ADIT Ventures, Ant Group, SoftBank Vision Fund 2, Honeycomb Asset Management, Arctic Ventures
In total, Klarna had raised $3,7B. Klarna's latest funding round in June 2021 was reported to be $6 m. In total, Klarna has raised $3.7 b. Klarna's latest valuation is reported to be $1.4 b.
How to Participate in Klarna IPO Before Shares Hit the Public Market
In the past, Initial Public Offerings as a profitable investment type were only available to big funds or elite customers of major brokerage firms or banks and it was hard (almost impossible) for retail investors to gain access to IPOs. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market.
Luckily, technologies and marketplaces changed the rules of the game, now average investors can participate in IPOs. Brokers adjusted accordingly, making access to IPOs more affordable now.
Step-by-Step Guide How to Buy Klarna IPO Stock at Its Offer Price
- Check the Klarna IPO details. Always Do Your Own Research (DYOR) for the company that is going for IPO first.
- Find a broker. You need a broker that can provide you access to the IPO. You can use our tool attached below that helps to match investors with available IPO brokers in your area. Just click "FIND IPO BROKERS" button below to see brokers that offer access to Klarna IPO.
- Check eligibility criteria. Each broker has its own eligibility criteria, like account minimum which can vary widely.
- Create trading account. For KYC you need to prepare your identity document (valid passport or driving license) and a document confirming the address of residence (utility bill). Note, this procedure may take 1-3 days as it's better to prepare your account in advance.
- Deposit your account. To participate in an IPO, your account must have available funds in the amount you send IPO application for. Note, this procedure may take 1-3 days as it's better to prepare your account in advance.
- Request Klarna shares. Assuming you meet the requirements for participating in this IPO, your next step will be to request a certain number of shares in the IPO. Note, you may not be allocated all the IPO shares you offer to buy.
- Wait for allocation. The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
Note: Many IPO purchases come with a lock-up period, usually 90 or 180 days. You will not be able to sell your shares until this period expires.
What Brokers Offer Access to this IPO?
Just click the button below to check the list of available IPO brokers that can provide access to Klarna IPO.
How to Invest After Klarna IPO at Its Opening Price
The most conservative way to buy Klarna stock would be to wait for the IPO and buy the shares on the public stock market. You can do this through the same brokers that provide access to IPOs or a trading app. Most of them have a stock trading functionality. Though, you won’t get in at the low price offered by pre-IPO.
How is Klarna going public?
Klarna has not yet made an announcement whether it goes public via a traditional initial public offering, SPAC or DPO. But most likely it will be a traditional IPO.
When will be the Klarna IPO date?
Klarna IPO date will be published here when the insormation is available. Stay tuned!
What will be the Klarna IPO price?
Klarna IPO price range will be published here when the information is available. Stay tuned!
How many Klarna shares will be available for its IPO?
Klarna's number of shares will be published here when the information is available. Stay tuned!
What stock exchange will Klarna trade on?
Klarna will be traded on - the stock exchange will be published here when the information is available. Stay tuned!
What Is the Klarna Stock Ticker?
Klarna stock symbol will be published here when the information is available. Stay tuned!