AI-enabled global payment provider and shopping assistant Klarna has proceeded with its strategy for a potential US listing for a valuation of USD 20 billion. The Buy Now, Pay Later (BNPL) company recently started discussing with investment banks to work on an initial public offering that could happen in the third quarter of 2024, with Klarna considering seeking a valuation of approximately USD 20 billion.

As mentioned by Bloomberg, negotiations are still ongoing and details of the offering, including valuation and timing could be modified, were not disclosed. At the time of writing, Klarna representatives declined to comment on the matter. Klarna’s developments in the US Through this listing, Klarna could potentially overcome past difficulties in which the company saw conflicts among its backers and a retreat from a pandemic-era valuation.

The company’s valuation reached approximately USD 45.6 billion in a 2021 round before decreasing to USD 6.7 billion in 2022, as increasing interest rates pushed investors to reconsider backing online lending platforms. According to representatives in a statement provided to Bloomberg in January 2024, a US IPO could happen in the upcoming period, with officials noting that the country is one of Klarna’s largest markets by revenue, with over 37 million customers. The statement followed the company’s first profitable quarter overall after almost four years of losses.

However, Klarna has been profitable in the US for four consecutive quarters. To expand its services in the US, Klarna recently announced the launch of Klarna Plus, issued by WebBank, to eligible customers through its app. The service was set to allow members to improve their Klarna experience by receiving access to several capabilities and offers, including waived service fees on the company’s One Time Card product, double reward points, and special deals with various brands. In addition to supporting its development strategy, Klarna introduced the service as a response to research indicating that users require an improved shopping experience through a subscription model.

Moreover, the launch assisted the company’s engagement with its US-based consumers, while further diversifying its portfolio of payment and shopping solutions. The introduction of Klarna Plus came after a period of development for the business in the US market, with it aiming to grow beyond BNPL services into a shopping and payments ecosystem. With its operations started in 2005, the Sweden-based company provides credit to approximately 150 million shoppers globally, intending to expand the cost of online purchases over multiple weeks. As per its data, Klarna currently manages nearly 2 million transactions per day across 45 countries.

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