Klarna valuation raised by Chrysalis ahead of IPO plans

Klarna’s valuation has seen a significant uplift as Chrysalis Investments Ltd adjusts its stake ahead of a potential IPO next year. With recent filings revealing a valuation of approximately $14.6 billion, the fintech is positioning itself for a promising public debut, potentially targeting a valuation of $20 billion in 2025.

Editorial Team
October 29, 2024
2 minutes

Tagged under:
Fintech
PayTech

Klarna‘s valuation has received a significant elevation from its shareholder, Chrysalis Investments Ltd, as the fintech prepares for a potential initial public offering (IPO) next year. Recent company filings indicate that Chrysalis has increased the value of its stake to £120.6 million, up from £100.3 million in the previous quarter. This adjustment suggests an implied valuation of approximately $14.6 billion for Klarna, according to analysts at Deutsche Bank AG.

This upward revision is reflective of a broader market trend, where shares of Klarna’s competitors—Affirm Inc. and PayPal Holdings Inc.—have seen remarkable gains, soaring by 145% and 59% over the past year, respectively. Such positive performance in the fintech sector has boosted investor sentiment, prompting others to reassess their holdings in Klarna. For instance, Creades AB marked up the value of its stake by 18% last year, implying a total valuation of around $7.85 billion for the company. However, this figure is still a significant decline from the $45.6 billion valuation Klarna achieved during a fundraising round in 2021.

Despite internal challenges, including the recent ousting of board member Mikael Walther following conflicts with Chairman Mike Moritz and CEO Sebastian Siemiatkowski, Klarna is making steady progress towards its public debut. Reports suggest that the company is contemplating a valuation of approximately $20 billion for the upcoming IPO, with Chrysalis noting that the first half of 2025 appears to be a likely timeframe for this event.

Chrysalis also highlighted the potential for £200 million in liquidity stemming from Klarna’s IPO and the planned sale of another portfolio company, Featurespace, to Visa Inc. This strategy would enable the return of up to £100 million to its shareholders. In addition, the firm is exploring the possibility of launching a new investment programme that would target late-stage private companies, further diversifying its investment strategy.