Here are the five fintechs that could be next to IPO after Klarna

Klarna's successful initial public offering, which saw its stock close 15% higher on debut and maintain a 7% premium from its IPO price, signals a more receptive market for fintech listings, fueling speculation about the next major public offerings. Key contenders include Stripe, Revolut, Monzo, and Starling Bank, many of which have recently utilized secondary share sales to provide liquidity while deferring an immediate IPO, with the U.S. emerging as a preferred listing destination for several of these high-value private companies.

Analysis

The successful initial public offering of Klarna, which settled approximately 15% higher on its debut and has maintained a 7% gain from its $40 IPO price, indicates a significantly more receptive market for large-scale fintech listings. This positive sentiment is reinforced by the strong first-day performance of other recent fintech IPOs, including Gemini's 14% surge. In response, a robust pipeline of high-value private fintechs is being closely watched, though many are strategically deferring immediate listings. Major players like Stripe and Revolut have recently conducted secondary share sales at substantial valuations of $91.5 billion and $75 billion, respectively, providing liquidity to employees and early investors while retaining the flexibility to time a public debut. A notable trend is the gravitation towards U.S. exchanges, with Revolut's CEO explicitly favoring a U.S. listing and Starling Bank reportedly considering one. Other potential candidates exhibit varied timelines and strategies; Monzo targets a possible 2026 IPO at a $5.9 billion valuation, while Starling is focused on expanding its B2B software unit, 'Engine', and Payhawk projects a five-year IPO horizon tied to achieving $400-$500 million in annual recurring revenue. However, regulatory hurdles and internal issues present significant headwinds for others, such as Ripple, which has paused IPO plans due to U.S. regulatory uncertainty, and N26, which is navigating the fallout from regulatory failings and a leadership change.

Key Decisions for Investors

• Investors with access to private markets should monitor secondary sale opportunities in companies like Stripe and Revolut to gain pre-IPO exposure, noting the near-peak valuations being achieved.
• Anticipate a wave of major European fintechs, including Revolut and potentially Starling Bank, listing on U.S. exchanges, and assess the potential competitive impact on incumbent publicly-traded payment and banking companies.
• Differentiate IPO candidates based on their business models and timelines, distinguishing between mature payment platforms like Stripe, consumer-focused neobanks like Monzo, and B2B SaaS plays like Starling's Engine, as their risk profiles and valuation drivers vary significantly.
• Closely monitor the U.S. regulatory environment for digital assets and European banking supervision, as developments in these areas are critical catalysts or impediments for the listing plans and valuations of companies like Ripple and N26.