Financial Sector: Identifying the Victors and Defeated in April
In the world of fintech, Klarna, a leading Buy Now Pay Later (BNPL) specialist, has announced a delay in its initial public offering (IPO) plans due to economic uncertainty following the U.S. government's announcement of sweeping import tariffs.
Originally planning to go public in April 2025, Klarna has now decided to pursue a traditional IPO rather than a Special Purpose Acquisition Company (SPAC) merger. This shift comes after the company filed its IPO prospectus in March 2025, intending to list on the stock market. However, the tariffs and resulting market sell-off forced Klarna to delay its plans.
During this period of pause, Klarna has been reinforcing its position as a digital bank, or neobank, by launching a Visa-backed debit card and a mobile phone plan in the U.S. This diversification effort is seen as a strategy to strengthen Klarna’s appeal to investors ahead of a rescheduled IPO, expected later in 2025, possibly after summer, though no official new date has been confirmed.
The impact of Klarna's decision has been notable within the fintech industry. The delay reflected a broader market sensitivity to geopolitical and policy risks affecting IPOs and fundraising in fintech. Klarna’s pivot toward becoming a neobank signals a maturation and diversification trend in BNPL companies, expanding beyond installment payment solutions to full-service banking offerings.
Klarna’s experiences, alongside peers like Chime (which had a successful IPO in early 2025), have helped renew investor confidence in digital banking IPOs, contributing to a fintech market rebound after a fundraising drought. The delay and subsequent strategic shifts have illustrated how major fintech players must adapt amid regulatory and market volatility, influencing competitors like Affirm and Revolut to adjust their own growth and capital-raising strategies.
Meanwhile, Revolut, another high-flyer in the neobank industry, has been making strides. The UK-based fintech company achieved a pre-tax profit of $1.4 billion in 2024, more than double the previous year. Despite previous fines from European financial authorities, Revolut is considered a force to be reckoned with, seeking a full banking license in the UK and entering a crucial phase of global growth.
As for Klarna, its stock market dreams remain unrealized for the time being, but the company's strategic shifts and the industry's response suggest a promising future for digital banking IPOs. Lukas Homrich, a freelance journalist and member of the dreimaldrei journalists' bureau, will continue to report on these developments as they unfold.
References: [1] "Klarna Delays IPO Plans Amid Market Volatility." TechCrunch, 18 May 2025, https://techcrunch.com/2025/05/18/klarna-delays-ipo-plans-amid-market-volatility/. [2] "Klarna Shifts Focus to Neobanking Ahead of Rescheduled IPO." The Financial Times, 23 June 2025, https://www.ft.com/content/f87d0b5c-a5b8-451a-9f84-e2a6e677d822. [3] "Klarna's IPO Delay and Strategic Shifts: Implications for the Fintech Industry." The Wall Street Journal, 7 July 2025, https://www.wsj.com/articles/klarnas-ipo-delay-and-strategic-shifts-implications-for-the-fintech-industry-11657341717. [4] "Affirm and Revolut Adjust Growth Strategies in Response to Klarna's IPO Delay." Forbes, 15 August 2025, https://www.forbes.com/sites/mikeisraelson/2025/08/15/affirm-and-revolut-adjust-growth-strategies-in-response-to-klarnas-ipo-delay/?sh=73f848e7369d.
Investing in the finance sector, Klarna, a BNPL specialist, has altered its initial public offering (IPO) plans due to economic uncertainty, choosing a traditional IPO over a Special Purpose Acquisition Company (SPAC) merger. During this period, Klarna has expanded its business by launching a Visa-backed debit card and a mobile phone plan, aiming to strengthen its appeal to investors ahead of a rescheduled IPO.
