5 fintechs that could IPO after Klarna

The recent successful initial public offering (IPO) of Swedish payments group Klarna for $17 billion has sparked speculation among investors about which big fintech company will be the next to go public. Klarna’s IPO saw its stock price surge as much as 30% on the first day before settling around 15% higher. While the stock has dipped slightly since then, it is still trading above its IPO price.

The positive reception of Klarna’s IPO has signaled a growing willingness on Wall Street to embrace large fintech listings. Other recent fintech IPOs, such as eToro, Circle, Bullish, and Gemini, have also been well-received by investors.

With a crowded pipeline of potential fintech IPO candidates, many are looking towards companies like Stripe, Revolut, Monzo, and Starling Bank as potential contenders for the public markets.

Stripe, a digital payments firm founded by brothers John and Patrick Collison, has long been considered a potential IPO candidate. While the company recently opted for a secondary share sale instead of an IPO, the decision does not rule out a future public listing.

Revolut, a digital banking unicorn, has also been rumored to be considering an IPO. The company recently allowed employees to sell shares on the secondary market at a valuation of $75 billion, making it one of the most valuable private fintech firms.

Monzo, another British digital bank, reached a valuation of $5.9 billion in a recent secondary share sale. While there have been reports of the company preparing for an IPO, CEO TS Anil has stated that their focus is on scaling the business for now.

Starling Bank, a rival neobank of Monzo, has reportedly hired a new executive to lead its expansion plans in the U.S., leading to speculation about a potential IPO. The company’s focus on international expansion through its Engine technology unit could pave the way for a public listing in the future.

Overall, the success of Klarna’s IPO has set a positive precedent for future fintech listings, and investors are eagerly anticipating which big name will be the next to make its debut on the public markets. Payhawk, a Bulgaria-founded fintech firm, is making waves in the financial world with its ambitious plans for an IPO. Reports indicate that the company is looking to fetch a valuation of £4 billion in an upcoming secondary share sale. This comes after the firm was valued at $1 billion in 2022 and saw a significant increase in revenue in 2024.

“We’re definitely seeing the IPO window open,” said Payhawk CEO and co-founder Hristo Borisov. “We are looking at more of a five-year horizon there.” Borisov emphasized that the company’s goal is to reach $400 million to $500 million-plus in annual recurring revenue before considering an IPO.

In addition to Payhawk, there are other fintech companies that are potential IPO contenders in the future. Ripple, a blockchain firm valued at $15 billion, had previously explored IPO options but put them on hold due to regulatory uncertainties. With the changing landscape of crypto regulations, an IPO may be back on the table for Ripple.

Another contender is Germany’s N26, a digital bank valued at $9 billion in a recent funding round. However, the company has faced challenges, with co-founder Valentin Stalf stepping down as CEO amidst regulatory pressures. Despite these setbacks, N26 remains a strong candidate for a future IPO.

Overall, the fintech industry is seeing a surge in potential IPO candidates, with companies like Payhawk, Ripple, and N26 leading the way. As the market continues to evolve and regulations change, these companies will be closely watched for their potential public offerings.