What: Klarna reported its first quarterly profit in four years, signalling a potential stock market listing.

Why it is important: The potential stock market listing indicates a growth in the "buy now, pay later" fintech sector.

The company achieved a net profit of SKr90mn in Q3 2023, compared to a SKr2.1bn loss the previous year, with revenue increasing by 30% to SKr6bn. Klarna also reduced its credit losses by almost half, thanks to improvements in its underwriting models.

As part of its journey towards an eventual IPO, Klarna established a UK holding company alongside its Swedish banking license. The company has not yet decided on the specific location and timing of the listing.

Klarna's CEO, Sebastian Siemiatkowski, expressed satisfaction with the Q3 profit and emphasized the company's readiness for an IPO, once market conditions improve. Klarna's potential London listing would boost the London Stock Exchange Group.

Klarna studies ‘eventual IPO’ after first profit in 4 years