Pleo’s Strategic Move Towards an IPO: Appointing Søren Westh Lonning as CFO

Pleo, a leading European fintech firm, has taken a significant step towards its potential initial public offering (IPO) by appointing Søren Westh Lonning as its new chief financial officer. As revealed to CNBC, this strategic move signals Pleo’s readiness for market expansion and public trading. Lonning brings over 20 years of experience from various companies, including Chr Hansen and WS Audiology, promising to guide Pleo toward profitability and sustainable growth in challenging economic conditions.

Søren Westh Lonning, with his extensive background in financial services and tenure at Danish bioscience firm Chr Hansen, brings a wealth of experience to Pleo. His previous role at Chr Hansen, a company with a substantial market cap on the Danish stock exchange, is particularly notable given the recent $22 billion merger approval between Chr Hansen and Novozymes. Lonning’s focus at Pleo will be driving profitability, navigating the complex macroeconomic environment, and leveraging data for informed business decisions.

Lonning recognizes the balancing act required in the current market, stating, “There are many companies similar to Pleo…balancing growth and efficiency or profitability in the environment that we are operating in right now.” He emphasizes the importance of resource allocation for maximizing investment returns, a critical aspect for tech companies like Pleo.

The appointment of a new CFO is more than a personnel change; it’s a symbolic gesture indicating Pleo’s gearing up for a stock market listing. While Pleo is not rushing into an IPO, CEO Jeppe Rindom acknowledges it’s an “important consideration.” Rindom highlights the company’s focus on responsible decision-making, market impact on public tech companies, and the importance of being IPO-ready by 2025 despite current market pessimism.

Pleo’s decision to hire Lonning provides “optionality” for an IPO, aligning with its efforts to enhance its accounting, risk, and compliance processes. These developments come at a time when Pleo is exploring the lucrative world of credit, having recently launched overdrafts for customers and planning more credit products in the future.

The appointment of Søren Westh Lonning as Pleo’s CFO marks a pivotal moment for the fintech firm, hinting at its aspirations for an IPO shortly. With Lonning’s expertise and Pleo’s ongoing financial product expansion, the company is positioning itself for significant growth and market presence. Pleo’s journey reflects the dynamic nature of the fintech sector and the strategic maneuvers companies undertake to thrive in competitive and challenging economic landscapes.