Financial technology unicorns are closely watching the recent move by Klarna to file for a U.S. IPO, despite not being in a rush to follow suit. Klarna’s decision to go public has sparked speculation within the fintech industry about the timing and potential resurgence of big fintech IPOs. While the market is not yet fully open for IPOs, founders like Hiroki Takeuchi of GoCardless and Lucy Liu of Airwallex are keeping a close eye on the developments.
Takeuchi emphasized that for his company, GoCardless, the focus is on building a better business rather than rushing into an IPO. He sees listing as a milestone in the company’s journey rather than the ultimate goal. Similarly, Liu shared that Airwallex is also not ready for an IPO at this time. The company is more focused on improving its services and solving payment friction globally before considering going public.
Despite the cautious approach of these fintech unicorns, analysts are optimistic about the outlook for fintech IPOs. The macroeconomic conditions, interest rates, and political environment are aligning favorably for potential IPOs in the future. Companies in the fintech sector have raised significant funding through venture capital this year, indicating a strong investor interest in the industry.
Jaidev Janardana, CEO of Zopa, a British digital bank, noted that while an IPO is not a priority for his firm at the moment, the private markets continue to be supportive for technology businesses looking to invest in growth. However, Janardana sees potential for a more favorable IPO market in the next couple of years, with the U.S. likely opening up in 2025. This could pave the way for European companies to consider IPOs in the following year.
Overall, while fintech unicorns are not rushing to go public following Klarna’s filing, the industry remains optimistic about the future of fintech IPOs. The focus for companies like GoCardless, Airwallex, and Zopa is on building a strong business foundation and delivering value to customers before considering a public listing. As the market conditions evolve, these companies will continue to evaluate their options and make strategic decisions about their future growth and expansion.
