Klarna, a Swedish BNPL provider, is in discussion with investment banks aiming for a US IPO as early as the third quarter of this year.

According to familiar sources, Klarna is seeking a valuation of about USD 20 billion, and ongoing discussions with the banks iterate that the details and timings of the IPO may change during the latter half of the year.

Analyst QuickTake: Today’s news on Klarna’s anticipated IPO follows nearly three months after the company announced incorporating a new holding company in the UK in preparation for the IPO after being valued at USD 6.7 billion after the company’s USD 800 million funding round in July 2022—taking a steep discount from its valuation of USD 45.6 billion , when it raised USD 689 million in June 2021.