Klarna’s upcoming New York IPO has reignited optimism for British fintech companies looking to go public after a prolonged slowdown in the sector. With the Swedish “buy now, pay later” giant targeting a valuation of at least $15 billion, investors and industry experts believe this could open the floodgates for other fintech firms considering IPOs.
Klarna’s Second Shot at an IPO
Klarna had previously attempted to go public in 2021, riding high on a $45.6 billion valuation after rapid fundraising. However, the tech stock downturn and economic instability forced the company to slash its valuation to $6.7 billion in 2022. Now, with renewed investor interest, Klarna is set to price its IPO in April, and its success could influence other fintech firms to follow suit.
James Wootton, a partner at Linklaters, which advised Wise on its 2021 London IPO, emphasized that Klarna’s move could act as a catalyst for others looking at IPOs as a path to growth and liquidity.
The fintech sector saw an IPO boom in 2021, with 101 fintech companies raising nearly $297 billion globally. However, this number plummeted between 2022 and 2024, with only 86 firms raising $32.76 billion. Klarna’s public debut could be the turning point the industry needs.
Who’s Next? Fintech Firms Watching Closely
Several UK-based fintech companies are seen as potential IPO candidates, including:
- Monzo and Starling Bank (Challenger banks)
- Zilch and Ebury (Payments and BNPL platforms)
- Revolut and Zopa (Well-funded fintech firms with IPO ambitions)
Zilch’s CEO, Philip Belamant, has confirmed that his company is eyeing an IPO in 2026, closely monitoring Klarna’s listing to gauge market sentiment. Similarly, Ebury, a payments company partly owned by Banco Santander, is preparing for a London IPO as early as June, with a potential valuation of £2 billion ($2.6 billion).
Revolut, the UK’s most valuable startup, remains tight-lipped on its IPO timeline, emphasizing its focus on expansion and product development. Meanwhile, Zopa has indicated that it is ready for an IPO but is waiting for favorable market conditions.
London vs. New York: The Battle for Fintech Listings
One major question remains: Where will these fintech firms list?
Klarna’s decision to go public in New York rather than Europe has intensified the debate over whether London is losing its edge as a financial hub. The London Stock Exchange (LSE) is actively courting fintech firms like Zilch to remain in the UK, but the appeal of deeper capital markets in the U.S. is hard to ignore.
Monzo is reportedly considering both London and New York, but no final decision has been made. Similarly, Zilch is still undecided on its listing venue.
As Klarna moves closer to its IPO date, the outcome will likely shape the decisions of other fintech giants. A strong performance could inspire more UK firms to accelerate their public listing plans, while market volatility could push IPOs further down the road.
The fintech world is watching closely—will Klarna’s IPO be the spark that reignites fintech listings, or will companies remain cautious?
