Trustly's IPO indefinitely delayed
The news comes in wake of Swedish regulators becoming concerned about the lack of due diligence for Trustly’s consumers. Previously, regulators only required this for merchants working with Trustly, not consumers.
Trustly’s IPO was previously slated for release this quarter.
The IPO was also forecasted to be one of the largest from a European fintech company, floating around $9 billion.
In a statement from Trustly Chairman Johan Tjarnberg, regulator concerns and questions all need to be addressed before the company can pursue a public offering. Because of this, the release is postponed indefinitely.
Regulators want a deeper look into Trustly’s customers
In the company’s annual report released back in March, Swedish regulators were conducting a review regarding money laundering and terrorism financing prevention. This isn’t to say that Trustly is accused of either, but because the company profits greatly with high-risk betting operations and online Pay n Play Casinos, regulators feel the need to perform more thorough checks.
These checks are why the IPO is postponed. Regulators want to ensure that end-consumers are not using the service for either of those two cases.
An open dialogue with regulators will help Trustly reach its IPO goal
Tjarnberg stated that by the end of April, regulators could have altered their opinions regarding the company’s operations based on an open dialogue between the two organizations. We are now in May and there is no news of Trustly’s IPO release date, which means the company must still be under scrutiny.
Trustly’s revenue increased by 46% in the first quarter of 2021 compared to that of last year’s growth.