Intro

Klarna, the Swedish fintech powerhouse, is going public on the NYSE (ticker: KLAR).This marks a major moment for the Buy Now, Pay Later (BNPL) space. This IPO will test whether investors believe BNPL is a smarter alternative to credit cards—or another form of subprime lending in disguise.A few years ago, Klarna was worth $46B in private markets. Now? It’s eyeing a $15B-$20B valuation—a stark reminder of how fintech sentiment has shifted in a world of higher interest rates.7 Key Themes:1️⃣ Klarna is going public at a fraction of its peak valuation.2️⃣ AI-driven cost cutting (automated customer service, AI-powered CRM) is improving margins.3️⃣ Klarna’s banking license is an advantage, but deposit growth is slowing.4️⃣ The US is now Klarna’s largest market, but credit losses there are rising.5️⃣ Klarna is morphing into an advertising & payments platform (ads = 6% of revenue).6️⃣ Internal controls raise red flags (issues with user access, revenue recognition, and credit loss estimates).7️⃣ Insiders & VCs have already cashed out >$800M pre-IPO.Valuation Debate:🚀 Bull case: Klarna transitions into a broader fintech platform, scaling ads and banking services.🏛️ Base case: Klarna remains a profitable BNPL, but growth slows due to regulation.📉 Bear case: Klarna gets valued like a consumer lender, with rising credit losses and shrinking margins.Klarna’s IPO will be a key test for fintech. If it pops, it could reopen the IPO window for names like Chime, Revolut, and (maybe someday) Stripe.Does Klarna deserve a premium multiple, or is it just a fancy lender?Let’s hear it—bull or bear? 🐂📉Get the full breakdown on the IPO at mostlymetrics.com