Klarna and Deel Set to Launch IPOs While Stripe Leverages Crypto Innovation

Welcome to the latest updates from the fintech world, where major players like Klarna and Stripe are making significant strides by integrating cryptocurrency into their business models. In this week’s roundup, we will explore upcoming IPOs, a unique Super Bowl advertisement from a fintech company, and important leadership changes within Stripe.

Major Developments in Fintech

Klarna, the renowned Swedish buy now, pay later platform, is set to take bold steps in the crypto space. CEO Sebastian Siemiatkowski announced on X that the company will actively embrace cryptocurrency. Furthermore, Klarna is preparing for a U.S. Initial Public Offering (IPO) scheduled for April, with a projected valuation of $15 billion, as reported by the Financial Times. This valuation marks a significant drop from its peak of $45.6 billion in 2021 but still positions it as one of the largest IPOs of the year.

Funding News and Financial Highlights

• Khazna: This Egyptian fintech startup focused on low- and middle-income workers has raised $16 million in pre-Series B funding, bringing its total funding to over $63 million.
• Rapyd Financial Network: The global payments platform is looking to secure $300 million in a new funding round, which would value it at $3.5 billion—significantly lower than its 2021 valuation of approximately $9 billion.
• Deel: The fintech company, which has transitioned into HR services, is laying the groundwork for an IPO after reporting an annual revenue run rate of $800 million for 2024.
• Superlogic: This startup has successfully raised $13.7 million at a valuation of $200 million, providing consumers the ability to use rewards points for experiences like NBA games.

In a cautionary tale for startups, the recent bankruptcy filings of Bench reveal that the Canadian cloud accounting software firm struggled to achieve profitability. Bench consumed $135 million since its founding in 2012, ultimately succumbing to a liquidity crisis before being acquired by Employer.com.

Stripe’s Strategic Moves

Stripe has made headlines by completing its $1.1 billion acquisition of the stablecoin platform Bridge, marking its largest acquisition to date and a significant step into the crypto arena. Additionally, the company has appointed Asya Bradley as the lead for Startups and Venture Capital Partnerships, following her previous roles at Synapse and Sila.

Fintech Celebrities and Partnerships

In another exciting development, Philadelphia Eagles running back Saquon Barkley has joined fintech startup Ramp as an investor and starred in the company’s inaugural Super Bowl commercial.

Industry Updates

• The chief of the U.S. Consumer Financial Protection Bureau (CFPB) has instructed all staff to pause work shortly after the bureau’s headquarters were closed for a week.
• Plaid is collaborating with Goldman Sachs in an effort to raise between $300 million and $400 million through a tender offer.

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