Klarna asks Goldman Sachs to Lead its IPO, Plans to raise $20B

Klarna asks Goldman Sachs to Lead its IPO: The Swedish fintech company, ‘Klarna’ said that it will ask Goldman Sachs to help it go public next year.

On Wednesday, Bloomberg reported that the Swedish BNPL company is in connection with the banking giant to help itself to issue public subscriptions.

Last week, Klarna had a discussion with its investors about share sales before the launch of the IPO. The company expects to raise $20 billion through its public subscription.

However, PYMNTS on Thursday reached out to the spokesman of both the company Klarna and Goldman Sachs but no one replied.

Klarna IPO issue decision comes at a time when BNPL use is on the rise because rise in younger and online savvy shoppers.

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Last week, PYMNTS said, “This trend is particularly evident during peak shopping seasons; for instance, consumer spending on BNPL transactions reached $17 billion between November and December, marking a 14% increase from the previous year.”

It further added, “This surge indicates a clear shift in consumer preference toward flexible payment options that allow for the deferral of costs without incurring significant interest.”

PYMNTS report also added, “Despite this popularity, there are areas for improvement; a portion of BNPL users desire lower fees and enhanced application processes. This presents an opportunity for both FinTechs and traditional banks to refine their offerings and capture a larger market share.”

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The PYMNTS Intelligence study “Redefining Retail: Consumer Finance Trends Driving the Evolution of Pay Later Plans” also found that people who are having difficulties are expected to use the BNPL service more.

According to the studies, 26% of people who use paychecks frequently and are facing difficulties in paying their bills are highly expected to use BNPL services in the coming months.

However, 21% of the people who can pay their bills from paycheck to paycheck mentioned the same thing.

This month, PYMNTS reported, “For consumers not counting on their next paycheck to get by, that share dropped. Only 10% of those who do not live paycheck to paycheck reported that they expected to use BNPL in the next year.”

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