Klarna is preparing to go public on Wall Street, with an expected valuation of around $15bn, making its IPO one of the biggest of 2025. But beyond its own future, this IPO could become a strong signal for the entire fintech sector, in search of favorable conditions to return to the markets.
It's all a question of timing
In 2021, Klarna was worth over $45bn, buoyed by the popularity of fractional payments. But rising interest rates and pressure on unprofitable models drove valuations down. In 2022, the fintech had to scale back its ambitions, with a fundraising round valuing the company at $6.7bn.
Klarna's return to the stock market, in a context where AI is capturing a large share of attention, marks a turning point. If the IPO is welcomed, it could restore investor confidence and revive IPOs in the sector.
An extensive waiting list
According to several sources quoted by Reuters, Klarna's success could unlock the projects of numerous fintech companies. Among them:
Monzo and Starling, two British neo-banks competing with Klarna, are ready to take the plunge. Zilch, a London-based fractional payments specialist, is aiming for an IPO in 2026, according to its CEO, Philip Belamant. Ebury, a Spanish payment company owned by Banco Santander, is preparing for a London listing in June. Revolut, valued at $41bn in 2024, remains one of the market's most closely watched offerings. Zopa, another British bank, is waiting for more favorable macroeconomic conditions before taking the plunge. The challenge of profitability
All these companies will soon be competing with each other, as well as with already listed companies such as PayPal. Our analyst Tommy Douziech emphasized the importance of proving their ability to generate sustainable profits, especially in an environment where interest rates are still high. If Klarna makes a successful return to the markets, it could well re-launch a whole generation of fintech players. If not, caution will be the order of the day.
