Klarna, the Swedish fintech poster boy and leading buy-now-pay-later (BNPL) service, is reportedly preparing for its IPO with a $15 billion target valuation on the New York Stock Exchange. Industry experts indicate the company plans to raise at least $1 billion through an initial public offering, with a public filing expected as early as next week. Earlier in November 2024, the company announced its filing for IPO in the US.
To gauge investor interest, Klarna is exploring a secondary share sale before the IPO. The company has enlisted major banks — Goldman Sachs, JPMorgan Chase, and Morgan Stanley — as advisors.
As of March 2025, Klarna serves over 85 million customers and partners with more than 500,000 retailers globally. The company’s most recent funding round in July 2022 raised $800 million at a $6.7 billion valuation from investors including Silver Lake Partners, Sequoia, BESTSELLER, CPP Investments, and Mubadala Capital. Total funding to date stands at $4.2 billion.
Klarna competes in the BNPL market alongside PayPal, Affirm, and Afterpay. Its future success hinges on maintaining market share and developing innovative services that appeal to younger consumers seeking flexible payment options.
Cashback, AI assistant, and cryptocurrencies are coming to Klarna
Klarna recently launched a savings account feature that enables users to maintain a Klarna “balance” for purchases and BNPL installments. The company also offers variable cashback rewards for app-based purchases, with rates depending on the retailer.
The company’s AI Assistant now handles customer service inquiries in over 35 languages around the clock, effectively replacing the workload of 700 customer service representatives.
In preparation for its IPO, Klarna plans to add cryptocurrency services to its platform, including stablecoin settlements for merchants and direct cryptocurrency payment options.
Financial milestones and market value
Klarna has demonstrated strong financial improvement, posting its first profitable quarter in four years and reducing its annual losses. The company’s 2023 revenues grew 22% to $2.1 billion, while processing $92 billion in gross merchandise volume (GMV) — a 17% increase from 2022. The company also cut its losses by 69% in 2023, indicating improved financial stability.
Klarna’s valuation history shows significant volatility, falling from $45.6 billion in 2021 to $6.7 billion in 2022. The proposed $15 billion IPO valuation suggests renewed investor confidence and recognition of the company’s progress toward profitability.
The Swedish Financial Supervisory Authority has raised concerns about Klarna’s anti-money laundering (AML) practices, noting weaknesses in risk management and customer due diligence. The company has also faced internal challenges, including debates over issuing golden shares before the IPO, which could affect investor sentiment.
Is early April the final date?
The IPO is scheduled for early April, pending market conditions and SEC approval. Klarna has declined to comment, citing the confidential nature of its SEC filing.
The choice of the New York Stock Exchange reflects Klarna’s strong U.S. presence, where it has achieved consecutive profitable quarters. The company’s strategy focuses on expanding merchant partnerships and enhancing services through AI. Its growth in the U.S. and other markets remains crucial for long-term success.
The IPO market shows signs of revival in 2025, with U.S. IPO volumes reaching $8.8 billion year-to-date. However, some analysts question whether regulatory challenges and competition justify the $15 billion valuation. Klarna’s public offering could signal a turning point for fintech and BNPL sectors, marking renewed investor confidence after recent market challenges.
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