We all know that there are a few things that need to be cracked when it comes to e-commerce and those are creating your website, nailing the logistics as well as handling payments and when it comes to payments, you need a payment provider for your website and people use one of the whole list of payment providers available out there. Talking about these providers, Klarna is one of them and it also provides credit for e-commerce customers so that they can buy things on installments and pay later in monthly trenches. As you would already know, the main business for these payment providers is their income from loans and so everyone is jumping onto that.
Now, it has been reported that Klarna is readying itself for an IPO to be launched in the market very soon. TechCrunch was told that “The company has initiated a process for a legal entity restructuring to set up a holding company in the United Kingdom “as an important early step” in its plans for an initial public offering”. TechCrunch adds that the move comes on the heels of a positive third quarter in which Klarna swung to a profit and reported 30% higher revenue of around $550 million.
The spokesperson added that Setting up the U.K. holding company is an administrative change that has been in the works for over 12 months “and does not affect anyone’s roles, nor Klarna’s Swedish operations.” Creating a new legal entity at the top of the company’s corporate structure would enable it to list on a stock exchange more easily. After this, the company mentioned that “Klarna Holding will continue to be the regulated financial holding company under the direct supervision of the SFSA [Swedish Financial Supervisory Authority], and we will continue to hold a Swedish banking license. This entity would be registered in the U.K.”. Sources added that Klarna “chose to set up the holding company in the United Kingdom because it considers the region “a well-respected global financial market, with a legal, regulatory and capital markets framework that’s familiar” to its global investor base” and that timing and location of IPO is not decided yet.
