Klarna‘s upcoming U.S. initial public offering could help unlock a pipeline of British fintech flotations after a barren period for new technology listings, investors, lawyers and an executive told Reuters.
Reuters
Stockholm-headquartered Klarna, best known for its buy-now pay-later products, publicly filed to float on the New York Stock Exchange earlier this month in its second attempt at listing on the public markets in four years.
It had looked to IPO in 2021, after shooting from a valuation of $5.5 billion to $45.6 billion in three funding rounds. But investors soured on tech companies as interest rates rose and economies stuttered, and the company was forced to cut its valuation to $6.7 billion in a 2022 fundraising.
Now it is back, and could be worth at least $15 billion in an IPO likely to be priced in the first half of April, one person with knowledge of the plans said.
“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,” said James Wootton, a partner at Linklaters, who advised money transfer company Wise on its 2021 listing in London.
At the peak of a post-pandemic fundraising boom in 2021, 101 fintech companies raised $296.86 billion via IPOs on global stock markets, according to data from PitchBook, compiled for Reuters. But between 2022 and 2024, just 86 firms raised $32.76 billion via IPOs.
Klarna’s plans have fuelled hopes of a resurgence.
“It’s quite clear that the market is looking to Klarna as a bellwether for future fintech IPOs, many of which are in a long pipeline,” said Tim Levene, chief executive of London-listed fintech investment fund Augmentum.
“We hope that Klarna is the first of many to list, which will prove a positive data point for the rest of the market.”
Challenger banks Monzo and Starling, as well as payments companies Zilch and Ebury, are among the fintech companies considering plans to list at some point in the future, sources close to the companies told Reuters.
Zilch, which offers a competing buy-now pay-later product to Klarna, is currently aiming to float in 2026, Philip Belamant, its chief executive, told Reuters.
“The Klarna IPO will be a significant moment for the fintech sector, and we’ll be watching closely,” he said, adding that a successful IPO could “set the stage for greater investor confidence in European fintechs going public”.
Ebury, a Spanish-founded payments company majority owned by Banco Santander, is gearing up for a London listing by June at the earliest, one person familiar with knowledge of its plans said. The company will likely seek a valuation of around 2 billion pounds ($2.6 billion), the person said, adding the timing would depend on market conditions.
Ebury did not respond to a request for comment. Santander declined to comment. It has said in the past that listing Ebury was one of many alternatives for the business.
Britain’s Revolut has previously signalled its intention to list publicly. A spokesperson for the challenger bank, Britain’s most highly-valued startup, declined to comment on specifics.
“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 to serve our growing global customer base,” the person said.
Zopa, which is headquartered in London, has no firm timeline for an IPO, a spokesperson said. “We continue to plan towards an eventual IPO, preferably in the UK and can be ready in a short time, however we will wait for the right macroeconomic and market conditions,” the spokesperson said.
To be sure, many have raised money and can wait, and conditions are volatile, forcing some European companies to put IPOs on hold.
“A lot of them (fintech companies) have the luxury of being able to choose their time,” said Patrick Evans, head of UK equity capital markets at Citi.
The choice of the U.S. venue by Klarna is also likely to intensify debate over where these fast-growing companies should list.
Monzo has discussed floating in Britain or the U.S. but has set no firm timeline or venue for an IPO, a person familiar with the company’s plans said.
The London Stock Exchange has been making overtures to fintech companies including Zilch, one person familiar with the matter said. Zilch has yet to choose a venue, the person said. The London Stock Exchange Group declined to comment.
Uniqlo Europe — a UK-registered company — has filed its results for the year to the end of August 2024 and they showed its turnover jumping 30% to €1.696 billion, helped by younger consumers tapping into trending items.
Uniqlo
As well as turnover increasing, there was good news on profits with operating profit before one-offs up 50% to €283 million. The company said that the gross profit margin was “maintained at a fairly stable level with positive growth of €268 million”. And net profit for the year jumped from €140.8 million to €222.9 million.
This all came as the number of stores the company operated across the continent rose by 10% to 77 with the number of markets it’s e-commerce team delivers to remaining flat at 26.
That may not seem like a lot of stores for a giant company that has been in Europe for several decades. But the company has rolled out its new stores quite slowly and steadily and its focus on large-format flagships has also meant that a slow approach makes good commercial sense.
The company said the sales increase came as European customers embraced Uniqlo Life Wear products. And of course, those new stores had an impact as well with the first Uniqlo store in Luxembourg opening in October 2023. A reopened flagship in Opera, Paris also helped. Other recent additions to its store portfolio include Edinburgh in Scotland and Rome in Italy, both located in historic buildings with distinctive architecture.
Importantly as well, as mentioned earlier, the company said there was a significant increase among a younger customer base who’ve been enthusiastic about items like the mini-round shoulder bag, bra-top and pleated trousers that went viral during the summer.
Under Armour has officially signed high school basketball player Eli Ellis to its roster of athletes.
Under Armour signs high school basketball player Eli Ellis. – Under Armour
Known for his deep shooting range, elite confidence, and relentless drive, Ellis embodies the brand’s competitive spirit and commitment to excellence.
To mark the signing, Under Armour is spotlighting Ellis in the latest installment of its “Let Them Talk” campaign, created in collaboration with viral content powerhouse RDCWorld. Blending RDCWorld’s signature humor with the high-intensity world of basketball, the campaign captures the mindset of Under Armour’s top athletes—those who don’t just hear the doubters, but use the noise as fuel to rise even higher.
This second installment of Let Them Talk debuted last week during NCAA tournament coverage, featuring The University of South Carolina. With new episodes rolling out through March and April across streaming platforms, Under Armour’s digital channels, and social media, the series showcases an elite lineup of UA athletes.
Hourglass Cosmetics opened on Thursday its new global flagship in New York City.
Hourglass opens global flagship store in New York City. – Hourglass
Located at 14 Prince St., in New York City’s NoLita neighborhood, the store is designed with a sophisticated, apartment-inspired aesthetic. The flagship store allows clients to explore the Hourglass collection, enjoy customized services, and experience makeup application in an ultra-flattering environment.
Founder and president Carisa Janes played a hands-on role in the store’s design, collaborating with TMR Design and Ryan Crozier of Crozier Studios. The boutique’s warm color palette, marble details, and gold accents reflect Hourglass’s aesthetic.
Natural light from wrap-around windows enhances color accuracy, while artist stations along the window façade allow for seamless color matching. A sculptural marble beauty bar, crafted from natural stones and bespoke metals, serves as the boutique’s centerpiece, displaying the Hourglass collection. Meanwhile, a minimalist wall features rotating artwork, product installations, and creative campaigns.
Customers can browse, receive consultations, or relax in a living room setting. A private seating area, complemented by bespoke coffees, champagne, and a fully stocked beverage bar, offers an intimate beauty experience for personal or group appointments.
Completing the space is a custom gifting bar, which provides packaging and complimentary wrapping, while click-and-collect and in-store returns enhance convenience.
As part of its programming, Hourglass will launch an “Artist in Residence” series, featuring notable personalities in makeup and artistry. The series will debut in April with celebrity makeup artist Emily Cheng. The flagship’s curated programming will also include masterclasses, panel discussions, art installations, trunk shows, and exclusive product drops.
Entertainment8 years ago