Fintech giant Affirm rival files confidential IPO documents with SEC
Swedish fintech powerhouse and buy now, pay later pioneer has submitted confidential IPO documentation to U.S. regulators. The company, valued recently around $15 billion, marks a significant shift from its pandemic-era peak valuation of $46 billion.
Fintech giant Affirm rival files confidential IPO documents with SEC
Swedish fintech leader has secretly submitted IPO documentation to American regulatorsMarket analysts place current company valuation near $15 billion markNotable backers include venture capital heavyweights SoftBank, Sequoia Capital, and Atomico
The Swedish financial technology powerhouse, renowned for its installment payment solutions, disclosed Wednesday its confidential submission of IPO documentation to the Securities and Exchange Commission.
While the company's public prospectus remains under wraps, executives indicated that the offering timeline depends on regulatory review completion and market conditions.
Market analysts currently estimate the company's worth around $15 billion. The 2005-founded enterprise previously achieved a peak valuation of $46 billion during the fintech boom, backed by SoftBank's Vision Fund 2.
Following market corrections, the company's 2022 funding round reflected an 85% reduction, securing capital at a $6.7 billion valuation.
The company's investor base features prominent venture capital firms including SoftBank, Sequoia Capital, and London-based Atomico.
The chief executive previously expressed concerns about European regulations on employee stock options potentially driving talent toward American tech giants like Google, Apple, and Meta.
IPO discussions have been ongoing for months. During a February appearance on CNBC's "Closing Bell," the CEO suggested a 2024 public offering was "not impossible." Key competitor Affirm, which went public in 2021, currently maintains an $18 billion market value.
Last August, the company reported its first profitable half-year period.
The U.S. listing choice represents a setback for European exchanges, which have actively courted regional tech firms for domestic listings.
London's exchange has implemented reforms to enhance its tech-listing appeal, including provisions for dual-class shares that maintain founder control over corporate strategy.
While the CEO previously considered multiple listing venues including London, he indicated U.S. preference as early as 2021, citing enhanced market visibility.
PitchBook analyst Navina Rajan identifies this as part of a broader pattern.
"European company listings on regional exchanges continue declining from decade-low levels, while the tech sector valuation gap persists between regions," Rajan noted via email. "Though European IPO markets showed Q3 improvement," she added.
The U.S. listing aligns with the company's American market expansion strategy, according to Rajan.
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