Klarna is reportedly in talks with several U.S. banks about a potential IPO in Q3 2024, seeking a valuation of $20 billion. This comes after the company reduced its losses by 76% to $241 million in 2023, while revenues rose 22% to $2.27 billion. The company's headcount fell by around 25% by the end of last year, but a spokesperson stated that AI adoption did not directly cause this reduction.
Key takeaways:
- Klarna's adoption of AI, specifically a chatbot developed in partnership with OpenAI, has significantly improved its customer service efficiency, doing the work equivalent of 700 full-time workers and potentially driving a $40 million improvement in profit.
- The company's headcount fell by around 25% by the end of last year compared with the 2023 average, and AI is now playing a part in its recruitment strategy, with a focus on not adding headcount as quickly.
- Klarna is reportedly in talks with several U.S. banks about the prospects of listing through an IPO as early as the third quarter of 2024, seeking a valuation of $20 billion.
- Klarna managed to shrink its losses by 76% last year to SKr2.5bn ($241 million), while its revenues rose 22% to SKr23.5 billion ($2.27 billion).