Klarna eyes $15 billion IPO as British fintechs monitor market pulse

Klarna’s move toward a US listing may influence UK-based fintech firms as they weigh their own IPO timelines and venues.

Fintech sector awaits clarity as Klarna prepares for NYSE debut

Klarna, the Stockholm-based fintech company widely known for its buy-now-pay-later model, has filed to go public on the New York Stock Exchange, aiming for a valuation that could reach $15 billion, according to a source familiar with the matter. This marks its second attempt at going public after shelving its initial plans in 2021, when shifting macroeconomic conditions and rising interest rates dampened investor enthusiasm.

Once valued at $45.6 billion following rapid funding rounds during the pandemic-era tech boom, Klarna saw its valuation drop to $6.7 billion in a 2022 fundraising. Its revived IPO bid is being closely followed by market participants, not only for what it means for the company itself, but also for the broader fintech ecosystem—particularly in the United Kingdom, where several high-profile firms are considering listings.

IPO market recovery under scrutiny

James Wootton, partner at Linklaters who previously advised Wise on its 2021 London listing, believes a successful public debut by Klarna could reframe the IPO outlook across the sector. As he noted, “Any successful IPO of a high-profile business in the sector will be a catalyst for others to look again at an IPO as a strategic option for growth and/or liquidity.”

Data from PitchBook indicates a stark contrast between 2021 and subsequent years. That year, 101 fintech firms globally raised nearly $297 billion through IPOs. However, between 2022 and 2024, only 86 companies secured $32.76 billion, reflecting both market caution and selective timing strategies.

Potential listings in the pipeline

A number of UK-based fintech companies—including Monzo, Starling, Zilch, and Ebury—are said to be considering public listings. Zilch CEO Philip Belamant confirmed that the firm is targeting 2026 for its IPO. He remarked, “The Klarna IPO will be a significant moment for the fintech sector, and we’ll be watching closely.”

Ebury, a payments firm majority owned by Banco Santander, is preparing for a potential London listing by June, depending on market conditions, and may seek a valuation around $2.6 billion. While Ebury has not issued an official comment, Santander has previously indicated that a public listing remains one of several strategic options under consideration.

Revolut, currently the highest-valued startup in the UK, has signaled interest in a public offering but remains focused on business expansion rather than timing an IPO. A spokesperson emphasized, “Our focus is not on if or when we IPO, but on continuing to expand the business, building new products, and providing better and cheaper services.”

Similarly, Zopa stated that while it has no firm IPO timeline, it remains prepared to go public in the UK when the market environment is more favorable.

Market conditions and venue preferences matter

Volatility in equity markets has led many fintechs to delay IPO decisions. According to Patrick Evans, head of UK equity capital markets at Citi, “A lot of them have the luxury of being able to choose their time.”

Klarna’s choice of the US as its listing venue is also prompting renewed discussion about where high-growth fintech companies should go public. Monzo has reportedly explored both UK and US options, while Zilch has yet to determine its preferred venue, despite discussions with the London Stock Exchange.

The outcome of Klarna’s IPO—expected to be priced in early April—may set a tone for other fintechs evaluating public markets. Its performance could help guide not only valuations, but also strategic considerations around timing and geography for potential listings ahead.