Prime Highlights:
The Swedish buy-now, pay-later (BNPL) lender filed its IPO prospectus and plans to go public on the New York Stock Exchange under the ticker symbol KLAR.
Klarna’s valuation, which plummeted by 85% to $6.7 billion in 2022, is now estimated at $15 billion, fueled by a return to profitability in 2023.
Key Background:
Swedish buy-now, pay-later (BNPL) lender Klarna filed its IPO prospectus on March 14, 2025, signaling its intention to go public on the New York Stock Exchange under the ticker symbol KLAR. The company has not yet disclosed the number of shares to be offered or the price range, but its decision to list in the U.S. represents a significant shift, particularly for European stock exchanges which have faced challenges retaining homegrown tech firms. Klarna’s CEO, Sebastian Siemiatkowski, had long indicated that a U.S. listing was more probable, given the market’s visibility and regulatory advantages.
Klarna, once valued at $46 billion in a 2021 funding round, has seen a dramatic valuation decline, dropping to $6.7 billion in 2022 after a tough period. However, analysts now estimate its value at around $15 billion, supported by a return to profitability in 2023. Revenue for the year increased 24% to $2.8 billion, and while the company posted an operating loss of $121 million, it also recorded an adjusted operating profit of $181 million, reversing a loss from the previous year.
The BNPL sector is highly competitive, with major players like Affirm and Afterpay (acquired by Block) vying for market share. Klarna’s rivalry extends beyond these companies to include traditional financial institutions such as JPMorgan Chase, Visa, and Mastercard. In a bid to expand its presence in the U.S., Klarna plans to accelerate efforts to secure a U.S. banking license, with a focus on disrupting high credit card fees. Klarna’s IPO comes at a time when market volatility and consumer sentiment remain uncertain, posing potential challenges for the company’s plans.
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