Klarna, Deel, Stripe: IPO Plans and Crypto Adoption

TechCrunch Fintech: This Week's Highlights

Greetings from TechCrunch Fintech! This week’s focus centers on the evolving strategies of prominent fintech companies.

We'll examine how industry leaders like Klarna and Stripe are integrating cryptocurrency into their operations.

Key Developments in Fintech

Several companies are currently preparing for initial public offerings (IPOs), signaling continued growth and investor confidence in the sector.

One fintech firm recently made a significant marketing investment with a commercial aired during the Super Bowl.

Stripe has announced a new leader to oversee its startup and venture capital initiatives, demonstrating a commitment to fostering innovation.

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Significant Developments in the Fintech Sector

Sebastian Siemiatkowski, the Chief Executive Officer of Klarna, announced on February 8th via a post on X (formerly Twitter) the company’s intention to integrate cryptocurrency into its operations.

The Swedish buy now, pay later (BNPL) leader is also reportedly preparing for an initial public offering (IPO) in the United States, anticipated for April.

Klarna's IPO Plans

According to the Financial Times, Klarna is aiming for a valuation of $15 billion during this IPO.

While representing a considerable decrease from its peak valuation of $45.6 billion in 2021, this figure would still position the offering as a major market event.

In 2022, Klarna’s valuation stood at $6.7 billion following an $800 million funding round.

Further Fintech News

The move towards embracing crypto signals a potential shift in Klarna’s strategy.

This development occurs alongside the company’s efforts to become a publicly traded entity in the U.S. market.

• Key Players: Klarna, Sebastian Siemiatkowski
• Focus Areas: IPO, Cryptocurrency Integration, BNPL
• Geographic Region: Sweden, United States

The Financial Times highlights the significance of Klarna’s planned IPO, even at a reduced valuation compared to previous highs.

Valuation Context

The targeted $15 billion valuation, though lower than the 2021 peak, remains substantial.

It underscores the continued interest in the BNPL sector and Klarna’s position within it.

Financial Updates and Startup Movements

Khazna, a fintech company based in Egypt, specializes in providing financial solutions for workers with low and moderate incomes. The company recently completed a pre-Series B funding round, securing $16 million and increasing its total funding to exceed $63 million.

Rapyd Financial Network is currently seeking $300 million in a new funding round. This investment would assign a valuation of $3.5 billion to the global payments platform, representing a significant reduction from its previous valuation of approximately $9 billion in 2021.

Deel, initially a fintech company that has expanded into HR services, is actively preparing for a potential Initial Public Offering (IPO). The company reported an annual revenue run rate of $800 million for 2024, demonstrating a 70% growth rate. Furthermore, $300 million in secondary shares were sold to General Catalyst and an unidentified sovereign investor.

Superlogic, a startup focused on enabling consumers to redeem rewards points for experiences like premium event tickets, has successfully raised $13.7 million. This funding round resulted in a company valuation of $200 million.

Bench's Financial Struggles

Recent bankruptcy filings have revealed details surrounding the collapse of Bench. The Canadian startup, which provided cloud accounting software for small businesses, consistently faced challenges in achieving profitability.

From its inception in 2012 until September 2024, Bench expended $135 million. Ultimately, a “liquidity crisis” forced the company to cease operations. Bench was subsequently acquired by Employer.com. This case highlights the risks associated with excessive debt for startups, as analyzed by Charles Rollet.

Stripe has finalized the acquisition of Bridge, a stablecoin platform, for $1.1 billion. This represents Stripe’s largest acquisition to date and signifies a substantial move into the cryptocurrency market.

In related news, TechCrunch has reported that Stripe has appointed Asya Bradley as its Startups and VC Partnerships lead. Bradley brings experience from previous revenue-focused roles at Synapse and Sila, and is also a limited partner in venture funds Ganas Ventures and Cowboy Ventures.

Saquon Barkley, the prominent running back for the Philadelphia Eagles, has invested in Ramp, a fintech startup. He also featured as the central figure in the company’s inaugural Super Bowl commercial.

Compelling News Headlines

The director of the US Consumer Financial Protection Bureau (CFPB) has instructed all personnel to halt operations. This directive follows the Trump administration’s decision to temporarily shut down the bureau’s main office for one week.

Plaid is collaborating with Goldman Sachs to secure between $300 million and $400 million through a tender offer.

Stay informed! For the latest developments in fintech, along with insights on coffee and other topics, follow @bayareawriter on X.