Discord and Klarna poised for IPOs in 2025 boosting global markets

Discord, the communications platform primarily used by gamers, and Klarna, the Swedish payments giant, are reportedly laying the groundwork for their initial public offerings (IPOs) in 2025. Both companies are in discussions with investment banks as they prepare to debut on the stock markets. This move has the potential to reinvigorate the global IPO market, which has been relatively subdued in recent years.

An IPO, or initial public offering, refers to the process by which private companies list their shares on a stock exchange to raise capital. Investors, businesses, and funds gain the opportunity to buy shares, providing financial backing for future growth while giving founders, employees, and early investors the chance to realise profits. Although IPO activity has slowed amid economic uncertainty, financial experts forecast a resurgence in 2025.

Reports suggest that Discord, valued at $15 billion (£11.6 billion) during a 2021 fundraising round, could soon finalise plans for a US listing. With around 200 million active monthly users largely from the gaming community, Discord has become a cultural cornerstone in digital communications. Previously, a $12 billion (£9.3 billion) takeover bid from Microsoft in 2021 highlighted its significant market value. Company representatives continue to downplay speculation and remain focused on delivering value to its user base while building a sustainable business model.

Klarna is another heavyweight set to enter the markets with an anticipated New York listing. The “buy now, pay later” payments service aims for a valuation of $15 billion (£11.6 billion), with filing potentially imminent. Klarna’s market valuation history has been highly volatile, peaking at over $45 billion in 2021 before dipping below $7 billion the following year. The IPO plans could stabilise its financial position and help secure investor confidence as uncertainty around fintech markets begins to ease.

IPOs have experienced a wave of delays due to economic, political, and market instability. However, experts indicate that major listings, such as those by Discord and Klarna, may encourage other firms in both the US and UK to follow their lead. In London, companies like Waterstones and Ebury are examining their options ahead of the next expected IPO cycle. These developments put renewed focus on the competition between the London Stock Exchange (LSE) and the New York Stock Exchange (NYSE), as firms choose listings based on valuation benefits.

Earlier this year, the French media group Canal+ became one of the most significant listings in the UK, valued at approximately £2.5 billion. Meanwhile, the Chinese fast fashion giant Shein is stepping up efforts to resolve regulatory hurdles and ethics inquiries as it targets an IPO in London. Discord and Klarna’s plans could mark a turning point for tech and fintech companies considering the transition to public markets.

The IPO decisions for these industry leaders will undoubtedly shape market trends and investor sentiment over the coming months. Whether they succeed in helping to revitalise global markets remains to be seen, but their moves signal increasing confidence in the potential for growth across the tech and financial ecosystems.