LISBON, Portugal — Financial technology unicorns are taking a measured approach to initial public offerings (IPOs) following the recent confidential filing by buy now, pay later firm Klarna for a U.S. IPO. While the timing and specifics of Klarna’s public offering remain uncertain, the development has sparked interest within fintech circles, prompting companies to closely observe market conditions for potential signs of recovery.
Klarna’s filing, which ended months of speculation regarding its listing strategy, has led to discussions about whether this could signal a resurgence in large fintech IPOs. However, many founders are adopting a wait-and-see attitude, focusing on market pricing and stock performance before making their own IPO decisions.
Hiroki Takeuchi, CEO of online payments startup GoCardless, stated during a panel at the Web Summit tech conference that now is not the right time for his company to pursue an IPO. He emphasized that for GoCardless, which is valued at over $2 billion, an IPO is more of a milestone in its growth journey rather than an ultimate goal. “The markets have been challenging over the last few years,” Takeuchi noted, adding, “We need to be focused on building a better business. The rest will follow if we get that right.”
Lucy Liu, co-founder of cross-border payments firm Airwallex, echoed Takeuchi’s sentiments, asserting that her company is also not ready for an IPO at this time. Liu referenced comments from Airwallex’s CEO, Jack Zhang, who has indicated that the firm aims to be “IPO-ready” by 2026. “Every company is different,” Liu noted, emphasizing their focus on enhancing their capabilities in global payments rather than rushing to go public.
Analysts are expressing increased optimism about the IPO landscape for fintech companies. Navina Rajan, a senior research analyst at PitchBook, highlighted that several macroeconomic factors are aligning favorably for IPOs, including interest rates and political stability following recent elections. “We outlined five handles to open the IPO window, and I think those stars are aligning,” Rajan told CNBC, although she acknowledged the uncertainty surrounding future developments.
Despite the cautious outlook on IPOs, fintech companies have raised approximately €6.2 billion ($6.6 billion) in venture capital from the start of the year through October 30, according to PitchBook data. Jaidev Janardana, CEO and co-founder of British digital bank Zopa, also indicated that an IPO is not an immediate priority for his firm. “To be honest, it’s not the top of mind for me,” he said, noting the benefits of having supportive long-term shareholders.
Janardana did express optimism about the IPO market, suggesting that the U.S. could see more favorable conditions for IPOs in 2025, which may subsequently influence Europe’s IPO landscape in the following year. However, he did not disclose specific plans for Zopa’s potential public offering.
As fintech companies navigate these uncertain waters, the industry remains vigilant, watching Klarna’s IPO closely for cues on when the market might reopen for broader public offerings.
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