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Is Klarna Stock Worth The Premium?
Forbes· 2025-09-15 11:10
Core Insights - Klarna, a Swedish fintech known for its "buy now, pay later" services, has expanded into a comprehensive payments ecosystem with over 100 million active users and partnerships with major retailers like Walmart and eBay [2] - The company went public on September 10, 2025, with an IPO price of $40 per share, raising approximately $1.37 billion and achieving a valuation of around $15.1 billion [3] - On its first trading day, Klarna's stock opened near $52, peaked at $57.20, and closed at $45.82, reflecting strong initial demand but also potential overvaluation concerns [3] Financial Performance - In 2024, Klarna processed approximately $105 billion in merchandise volume, generated nearly $2.8 billion in revenue, and recorded a net profit of $21 million, marking a significant turnaround from a loss of over $200 million the previous year [3][4] - In Q2 2025, revenue surged to $823 million, with the company gaining over 111 million active users and approximately 790,000 merchant partners [3] Profitability and Risks - Klarna's net profit of $21 million represents a net margin of less than 1%, indicating a thin profitability cushion [4] - Credit losses are managed better than the previous year, at about 0.5% of GMV in Q2 2025, but remain a significant risk, especially in the U.S. market [4] - The U.S. market presents both a major growth opportunity and a higher-risk credit landscape, with potential challenges from rising consumer delinquencies and regulatory scrutiny [4] Competitive Landscape - Klarna faces competition from other players like Affirm, PayPal, and Afterpay, all targeting the same merchants and consumers [5] - While partnerships with Walmart and eBay are significant, they often yield low economics for Klarna, raising concerns about the company's ability to increase its "take rate" and maintain margins [5] Valuation Considerations - Despite robust revenue growth and a vast merchant network, the narrow margin for error raises questions about the justification of Klarna's valuation [6] - For a bullish case to hold, Klarna must demonstrate the ability to scale profitably in the U.S., manage credit losses effectively, and convert merchant partnerships into high-margin growth [7]
Here are the five fintechs that could be next to IPO after Klarna
CNBC· 2025-09-15 06:21
Core Insights - Klarna's IPO at $17 billion has sparked interest in which fintech company will be next to go public [1] - Klarna's stock rose by 30% on its IPO day, closing 15% higher, and is currently up about 7% from its IPO price of $40 [2] - The positive reception of Klarna's IPO indicates a more welcoming environment for fintech listings on Wall Street [2] Klarna's IPO Impact - Klarna's successful debut has set a precedent for other fintech companies, with several firms like eToro, Circle, and Bullish also experiencing positive first-day receptions [2][3] - The performance of Klarna's IPO is being closely monitored by other fintech unicorns considering their own public offerings [6] Potential IPO Candidates - Stripe, valued at $91.5 billion, is a long-time IPO contender but opted for a secondary share sale in January 2023 [5] - Revolut recently allowed employees to sell shares at a valuation of $75 billion, positioning itself as a strong IPO candidate [7][8] - Monzo reached a valuation of $5.9 billion and is reportedly preparing for an IPO as early as the first half of 2026 [10] - Starling Bank is also considering an IPO in the U.S. as part of its expansion plans [13][15] - Payhawk, a Bulgarian fintech, is eyeing an IPO in the next five years, aiming for significant annual recurring revenue [17] Other Notable Mentions - Ripple has paused its IPO plans due to regulatory challenges but remains a potential candidate [18][19] - N26, valued at $9 billion, is also seen as a potential IPO contender but faces regulatory hurdles following leadership changes [19]
喝点VC|a16z聚焦万亿美元机遇下的Deel模式:AI时代,全球化劳动力模式将成为不可避免的转型趋势
Z Potentials· 2025-09-15 04:42
Core Insights - Deel aims to revolutionize global payroll and employment processes by providing a seamless, automated platform for companies to manage international workforce compensation and compliance [4][9][31] - The company has evolved from a simple Employer of Record (EOR) service provider to a comprehensive platform integrating payroll, HR, finance, compliance, and IT support across 150 countries [4][10][31] Group 1: Company Background and Vision - Deel was founded in 2019 with the vision of creating a global payroll payment channel, similar to the impact of SWIFT in the payment industry [4][9] - The founders, Alex Bouaziz and Shuo Wang, emphasize the importance of automation in standardizing complex payroll processes to provide equal precision and reliability for employees worldwide [5][6] Group 2: Key Success Factors - Deel's success is attributed to five key factors: vertical integration, modular system architecture, strategic acquisitions, rapid market responsiveness, and comprehensive automation [6][11] - The company has completed 10 acquisitions in its first six years, leveraging these to enhance its product offerings and infrastructure [20][25] Group 3: Vertical Integration - Deel's strategy involves controlling every aspect of the supply chain to ensure speed, depth, and precision in service delivery [12][15] - This vertical integration allows Deel to provide real-time error detection and customized payroll solutions, enhancing customer satisfaction [15][17] Group 4: Modular Approach - Deel offers non-bundled services, allowing clients to address specific needs without being forced into a predefined sales process [18][19] - This flexibility has led to a high net retention rate of over 120% since inception, significantly higher than traditional payroll providers [19] Group 5: Acquisitions as a Growth Strategy - The company strategically acquires firms to inject expertise and innovation into its operations, focusing on integrating top talent and technology [20][21] - Recent acquisitions have expanded Deel's local payroll engine capabilities to over 100 countries [25] Group 6: Speed and Responsiveness - Deel emphasizes a culture of immediate action in response to client requests, which has been a core operational principle since its inception [26][27] - The company's distributed workforce enables continuous availability, ensuring rapid problem resolution [26] Group 7: Automation and Efficiency - Deel is focused on increasing automation to streamline operations across recruitment, HR, payroll, and compliance, reducing reliance on manual processes [28][30] - The implementation of AI tools has led to a 50% reduction in customer support requests, showcasing the efficiency gains from automation [29][30]
IPO Market Enjoys $4 Billion Rebound Amid ‘Pent-Up Demand'
PYMNTS.com· 2025-09-14 19:51
Core Insights - The U.S. IPO market experienced a resurgence with seven large-cap companies going public last week, raising over $4 billion, indicating a potential rebound after a prolonged downturn due to market disruptions [2][3]. Group 1: IPO Market Dynamics - The positive reception of newly listed companies was notable, with Figure Technology Solutions' shares increasing by 28% and Black Rock Coffee Bar's shares climbing by 38% [3]. - The IPO pipeline remains robust, with expectations that total U.S. IPO volumes will exceed last year's figures if the current market conditions persist [4]. Group 2: BNPL Sector Growth - Klarna's IPO was highlighted as the largest FinTech listing of 2025, marking a significant moment for the BNPL sector, which is becoming a central force in transforming retail, credit, and payments [4][5]. - BNPL has entered the mainstream, with 128 million American adults utilizing a pay-later product from alternative credit providers in the past year, indicating a shift in consumer behavior [5]. Group 3: Technological Innovations - Figure's successful IPO raised approximately $787 million, reflecting strong investor interest in companies adopting blockchain technologies for lending and asset settlement [6]. - The future of capital markets is seen as increasingly reliant on blockchain, with Figure advocating for its use as a preferred method for transactions [6].
Via completes IPO with more Israeli flotations likely to follow
En.Globes.Co.Il· 2025-09-14 16:23
Core Insights - Via Transportation successfully completed its IPO, with shares rising 7.63% to $49.51, resulting in a market capitalization of $3.937 billion [1] - The reopening of capital markets for IPOs is driven by expectations of lower interest rates and improving economic conditions in the US [2][5] - Via's business model focuses on providing mobility management systems for public transport, primarily serving local authorities in the US [6][7] Company Performance - Via has reported growing revenue but continues to incur significant quarterly losses, indicating a focus on achieving profitability [2] - The company has raised nearly $900 million in private investments prior to its IPO, with a valuation increase from $2.93 billion to $3.03 billion between 2021 and 2023 [9] - Despite impressive revenue growth, Via's valuation has only marginally increased over the past four years, reflecting challenges in the market [9] Market Context - Other Israeli companies are preparing for IPOs, including Lendbuzz, Armis, and VAST Data, indicating a trend of increasing activity in the capital markets [3][5] - The anticipated growth in the US economy and expectations of interest rate cuts are encouraging investors to support newly listed companies [5] Investor Insights - Early investors in Via, such as Pitango and 83North, are significant beneficiaries of the IPO, with substantial returns on their investments [10][11] - Exor Ventures is the largest shareholder in Via, holding 18.7% of the company's shares, valued at $736 million [12] - Some investors, like Mori Arkin and the Vertex Fund, are experiencing lower returns due to their investment timing relative to Via's valuation changes [12]
Consumers love buy now, pay later loans. Here's why banks and credit card companies are wary of them
CNBC· 2025-09-14 16:04
Core Insights - Buy now, pay later (BNPL) plans are gaining popularity as an alternative to credit cards, allowing consumers to make purchases in short-term, typically interest-free installments [1] - An estimated 86.5 million Americans utilized BNPL loans in 2024, with projections indicating an increase to 91.5 million in 2025 [1] - Nearly half of Americans have used BNPL services at least once, with 11% having used them six or more times [1] Industry Impact - BNPL is seen as a threat to the credit card industry, as it caters to consumers who either prefer not to use credit cards or have limited credit availability [2] - Each purchase financed through BNPL represents a potential loss of transaction activity for credit cards, impacting major revenue drivers for banks and financial institutions [2] - The rise of BNPL services raises concerns among traditional lenders regarding consumer credit quality, as it creates a gap in understanding consumer credit profiles [3]
Why Americans Love 'Buy Now, Pay Later' — And Banks Don’t
CNBC· 2025-09-14 15:01
The consumer use of buy now, pay later continues to grow. Many, many consumers and all segments are using it. It's become pretty ubiquitous on online shopping at checkout and also is offered in many stores.Buy now, pay later plans are changing consumer spending habits by allowing purchases to be split into short term, typically interest free installments offering an alternative to credit cards. Credit isn't new. Credit's been around for thousands of years, and credit cards aren't new, but they've had a hard ...
Klarna, Figure, Gemini, and more: Big IPOs hit Wall Street
Youtube· 2025-09-13 18:14
IPO Overview - A significant number of IPOs occurred recently, including Gemini Space Station, Figure Technology, and CLA, with Gemini raising $425 million and expected to trade at $28 per share [2][59]. - CLA raised the most at $1.37 billion, while Figure Technologies raised approximately $787 million [2][3]. Performance Metrics - Gemini's stock opened with a 17% increase from its IPO price, while Figure Technologies had a standout performance with a 44% increase on its first day [2][6]. - Other companies like Black Rockck Coffee Bar and Via Transportation also had varying performances, with Black Rockck Coffee Bar opening at $26.50 [6][75]. Market Trends - The IPO market is showing signs of recovery after a downturn in 2022, with a notable increase in deal values and investor interest [9][10]. - The current environment is characterized by a positive regulatory landscape for cryptocurrencies, which is boosting investor sentiment [73]. Company Insights - CLA has reached 111 million users and is focusing on increasing revenue per user through new services [13][19]. - Figure Technologies is leveraging blockchain technology to transform capital markets, reporting $340 million in revenue and over $100 million in EBITDA last year [38][39]. Competitive Landscape - Gemini differentiates itself by offering a comprehensive suite of services, including a stable coin, crypto staking, and a credit card that rewards in crypto, aiming to create a super app for financial markets [61][63]. - Black Rockck Coffee Bar aims to combine elements of drive-thru and traditional coffee shop models, with plans to expand from 158 locations to 1,000 by 2035 [78][79]. Financial Strategies - Companies are focusing on maintaining competitive pricing despite rising costs, with Black Rockck Coffee Bar managing to keep prices stable by sourcing beans from various countries [82][87]. - Figure Technologies plans to use its substantial capital raised to push disruptive blockchain use cases and expand into new asset classes [42][50].
Big IPOs just had their busiest week in 4 years
Yahoo Finance· 2025-09-13 16:00
Core Insights - Wall Street has seen a significant rebound in initial public offerings (IPOs), with seven companies going public in a week, raising over $100 million each, totaling $4.4 billion, the highest since November 2021 [1][2] IPO Activity - The total proceeds from traditional IPOs this year have reached $25 billion, marking the highest level since 2021 [2] - The recent IPOs include a variety of companies such as a Swedish buy now, pay later lender, a blockchain mortgage platform, a coffee chain, and a crypto exchange founded by the Winklevoss twins [3] Recent Listings - Notable recent IPOs include Gemini Space Station, Black Rock Coffee Bar, Via Transportation, and Legence, with Gemini raising $425 million and its stock up 18% [5][6] - Black Rock Coffee Bar, Via, and Legence raised $294 million, $493 million, and $728 million respectively, with their stocks increasing by 45%, 3%, and 8% [6] Market Trends - The IPO market has become very active post-Labor Day, with road shows being the busiest since mid-2021 [7] - Earlier in the week, Klarna and Figure Technology Solutions went public, raising $1.37 billion and $787.5 million respectively, with their stocks showing mixed performance [8] Future Projections - Renaissance Capital projects about three to five IPOs per week for the next two months, although they do not expect another week with as many large deals [4]
Jim Cramer Notes “I Prefer Affirm to Klarna”
Yahoo Finance· 2025-09-13 13:45
Company Overview - Klarna Group plc (NYSE:KLAR) is a payments technology company that provides solutions in digital banking, advertising, and retail commerce. Its Klarna App serves as an integrated shopping and payment platform [2]. Valuation Insights - Klarna's valuation was over $15 billion when the stock was priced above $40 per share. After opening in the 50s, the valuation approached $20 billion, and following a pullback, it is now valued at over $17 billion, slightly higher than the venture capitalists' investment earlier this year. This valuation indicates a favorable investment opportunity at the current price [1].