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LISBON, Portugal — The landscape for financial technology companies considering public offerings is cautious yet vigilant, particularly following Klarna’s recent confidential filing for an IPO in the United States. This move has reignited discussions within fintech communities about the potential revival of significant IPOs in the sector.
Klarna, the Swedish buy now, pay later platform, has sparked interest with its decision to file, although specifics regarding the timeline, pricing, and number of shares remain undisclosed. As the market watches closely, many fintech founders are taking a measured approach, preferring to observe how Klarna’s IPO unfolds before making any public listing decisions themselves.
Hiroki Takeuchi, the CEO and co-founder of GoCardless, emphasized that his company is not rushing into an IPO, viewing the listing as just one milestone in a broader journey. At a recent panel at the Web Summit, Takeuchi highlighted the challenging market conditions faced in recent years, asserting that the focus should remain on enhancing business operations before considering going public. His company, which specializes in facilitating recurring payments, was most recently valued at over $2 billion.
Takeuchi stated, “We need to be focused on building a better business,” indicating that improved performance will set the stage for future opportunities, including an IPO.
Similarly, Lucy Liu, co-founder of Airwallex, echoed Takeuchi’s sentiments, indicating that now is not the right moment for her firm to pursue an IPO. According to Liu, Airwallex aims to be “IPO-ready” by 2026, but the immediate focus is on refining their services to streamline global cross-border payments. “Every company is different,” she remarked during a recent discussion, emphasizing that her firm’s conversations with investors will evolve as they approach the right moment for going public.
Growing Optimism for Fintech IPOs
Despite the reluctance to rush into public markets, analysts are increasingly optimistic about the prospects for fintech IPOs. Navina Rajan, a senior research analyst with PitchBook, noted that several macroeconomic factors are beginning to align favorably, including interest rates and political stability. “It’s definitely in a better place,” Rajan stated, acknowledging the uncertainties that still exist, particularly with new leadership in the U.S.
As of late October, fintech firms have collectively raised about 6.2 billion euros (approximately $6.6 billion) in venture capital this year, reflecting a robust investment climate for the industry.
Jaidev Janardana, CEO of British digital bank Zopa, reiterated that while an IPO is not a top priority for his organization, he sees indications of a more favorable market for public listings within the next few years, especially with U.S. openings anticipated around 2025. He noted that this could signal a more welcoming environment for IPOs in Europe in subsequent years, although details about Zopa’s potential public listing remain undisclosed.
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