(Bloomberg) -- Klarna Bank AB is in early talks with investors to gauge their interest in buying up existing shares of the company on the secondary market, according to a person familiar with the matter.
The move comes as Klarna continues to make preparations for a potential listing in the US, the person said, asking not to be identified discussing non-public information. The Stockholm-based fintech has considered seeking a valuation of around $20 billion for its initial public offering, Bloomberg previously reported.
A spokesman for Klarna declined to comment. The Information first reported the company’s deliberations about a secondary share sale earlier on Tuesday, noting the company has tapped Goldman Sachs Group Inc. to advise it on the sale.
The secondary share sale could help Klarna improve its valuation ahead of the public listing, The Information reported. Klarna’s valuation reached $45.6 billion in a 2021 round before falling to $6.7 billion the following year, as rising interest rates forced investors to reconsider backing online lending platforms.
Since then, Klarna has been investing in artificial intelligence as it attempts to whittle down costs and become more efficient. The company swung to an adjusted profit in the first quarter as revenue in the US, now its biggest market, surged 38%.
While equity capital markets have begun to rebound in recent months, activity levels are still a far cry from the heydays of 2021. That’s caused many late-stage venture-backed companies to turn to secondary sales in order to offer investors and early employees more liquidity.
The London-based fintech Revolut Ltd. has been in talks with investors to sell $500 million of existing shares that employees hold in the company as part of a deal that would value Revolut at more than $45 billion. That’s up from a $33 billion price tag the fintech garnered in 2021.
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