Klarna CEO Says Market Volatility Makes Him Nervous About Potential IPO
CEO Sebastian Siemiatkowski has told CNBC that Klarna will likely wait for volatility in the stock market to ease before making any solid plans for an initial public offering.
In an interview with CNBC, Siemiatkowski said: “The volatility in the market right now makes me nervous to IPO, to be honest. I think it would be nice to IPO when it’s a little bit more sound. And right now it doesn’t feel really sound out there.”
Swedish fintech Klarna is currently one of the leading firms in the flourishing “buy now, pay later” market. The market has thrived throughout the pandemic by allowing consumers to split the cost of their purchases into three or four monthly instalments. This has proven especially popular at a time when an increasing number of people have turned to online shopping amid lockdowns.
Klarna’s most recent private valuation came in at $46 million in June of this year, making it the most valuable “pure play” “buy now, pay later” company. Klarna’s closest two rivals in the public markets are Affirm and Afterpay, with the latter currently being acquired by Jack Dorsey’s Square for $29 million.
Siemiatkowski has previously suggested that Klarna could opt to list either sometime in 2021 or the following year. However, in his interview with CNBC, the Klarna CEO emphasised that the company was in no rush.