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Buying Klarna via crowdcube

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Hi

i noticed Crowdcube selling Klarna stock in the secondary market and its not yet a listed company with rumours of an ipo happening next year.  I think the company has a lot of potential and use it myself personally but trying to understand if the current market cap is too high?  Only looking to buy a few k and post-ipo it could shoot up?   

Comments

  • masonic
    masonic Posts: 27,163 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 18 December 2021 at 7:57PM
    It's being valued at £32.6bn. That's £1.8k per active monthly user. As an active user you'll have some idea what kind of money they make from you. Is the P/E ratio remotely sensible? Or perhaps they provide you with accounts as it wouldn't be very reasonable to ask investors to hand over their money blind. What sort of growth are they promising this investment could be used to achieve? Edit: I see the funds raised are being used to allow existing investors to exit. I wonder why they'd want to do that ahead of an IPO...
  • MX5huggy
    MX5huggy Posts: 7,159 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Can I use my Klarna account to finance the purchase of the shares? 
  • masonic said:
     I wonder why they'd want to do that ahead of an IPO...
    Perhaps they need access to their funds, or think they are better placed elsewhere to generate a better return?

    Its good to see the secondary market is working, I've been trying to 'ditch' some of my holdings.  The risk with these is that they diverge from the original pitch that got you interested in the first place, and you're unable to sell as they're not listed.
  • Prism
    Prism Posts: 3,847 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    I have had an indirect holding in Klarna for almost two years. It has gone up in value around 800% in that time. I do not know how much room it has left to grow as a private company before IPO.
  • Prism said:
    I have had an indirect holding in Klarna for almost two years. It has gone up in value around 800% in that time. I do not know how much room it has left to grow as a private company before IPO.
    Is it “CHRY”?
  • DireEmblem
    DireEmblem Posts: 930 Forumite
    Part of the Furniture 500 Posts Name Dropper
    edited 19 December 2021 at 12:18AM
    Funny you mention CHRY, I do hold it but mostly for access to Starling that is also on Crowdcube.  You don’t get to pick the allocations but your have much easier access to your investment should you need access to the funds.
  • Prism
    Prism Posts: 3,847 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    Prism said:
    I have had an indirect holding in Klarna for almost two years. It has gone up in value around 800% in that time. I do not know how much room it has left to grow as a private company before IPO.
    Is it “CHRY”?
    Yes thats the one. Because of the large increase in valuation its now around 25% of the trust.
  • Have you looked at the annual report? Are all shares of the same class? Which company are you considering investing in (the web page linked mentions "Klarna" which is a trading name, not a company name)? Is there any substance behind the hype?

    If you cannot readily find answers to the above questions, you may as well take your "few k" to your local casino.
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