Klarna's initial public offering (IPO) is taking shape. With CEO Sebastian Siemiatkowski as the driving force, the Swedes are on course for a US listing in the third quarter. Investment banks are already sounding out interest in such a large fintech IPO. They are entering the market with an indicative valuation of 20 billion dollars.

This sounds like a healthy approach, as they are not so crazy as to build on the hype valuation of 46 billion dollars and are looking for a significant upside to the last funding round at 6.7 billion dollars. And quite rightly so, Klarna may not have achieved profitability on an annualized basis, but it has broadened its revenue base considerably (+22%) and has the prospect of much more. Exactly what you need if you want to go public as a growth stock.

And hats off to Klarna CEO Siemiatkowski: he has managed to build up a substantial US business within a few years, which will become a pillar of profitability after start-up losses. At Klarna, this will be further enhanced by AI systems: Klarna will save at least 40 million dollars in costs in 2024 thanks to customer service management using OpenAI. The proof in the pudding: Klarna still has 4,200 employees at the end of 2023 after 5,400 a year ago.

What you should also know: Klarna was profitable until 2019, when Siemiatkowski turned up the heat to gain a foothold in the USA - already having an IPO in mind, which would be a little difficult to sell to investors with a blank spot on the Klarna map in North America.

There is currently more than one mood booster for the fintech sector. After the gloom, valuations are now rising. As was also announced on Wednesday, Stripe's valuation has risen from 50 billion to 65 billion dollars as part of a secondaries transaction for employee shares. The British neobank Monzo is on the verge of a funding with an impressive valuation of 4 billion pounds. And crypto trader Etoro is already putting out the flag for an IPO. A new cycle begins.