Klarna is Europe's largest private fin-tech start-up, founded by the same-named bank. Many investors are looking forward to its first public offering.
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.
Klarna's IPO date has yet to be determined. The placement is expected to occur in 2022, but there has been no formal confirmation. According to a statement from the co-founders, they are considering an IPO but are not working on it right now.
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.
