Home Money Buy now, pay later giant Klarna files for New York listing as it struggles with rising interest rates

Buy now, pay later giant Klarna files for New York listing as it struggles with rising interest rates

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US listing: Klarna said it had filed confidential paperwork with the Securities and Exchange Commission

US listing: Klarna said it had filed confidential paperwork with the Securities and Exchange Commission

Buy now, pay later giant Klarna has revealed plans to list in the US after a tumultuous period that saw its value plummet due to rising interest rates.

The Swedish firm said it had filed confidential paperwork with the Securities and Exchange Commission, the U.S. financial watchdog, but did not provide details about a possible value or when the listing would take place.

They follow a volatile few years for Klarna, which in 2021 was Europe’s most valuable startup at £36.2 billion, as the pandemic-fueled online shopping boom saw demand soar.

But the company, which allows users to delay or split the cost of purchases into installments and has recruited celebrities such as Paris Hilton to front its ads, saw its value plummet to £5.3bn the following year as rising inflation and interest rates slowed the process. consumer spending.

Klarna’s valuation at the time of listing has not been disclosed, but reports suggest it could be as high as £16bn.

The decision to debut in New York is a major blow to European stock markets and follows a similar move by Swedish group Spotify in 2018.

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