TLDR
- Klarna priced IPO at $40 per share, exceeding $35-$37 range, raising $1.37 billion
- Swedish BNPL company valued at $15.1 billion for NYSE trading debut
- Trading begins Wednesday under KLAR ticker with 34.3 million shares available
- IPO delayed from March due to tariff volatility, now leads busy IPO week
- Company reported $52 million Q2 loss but saw record on-time payments
Klarna completed its long-awaited initial public offering Tuesday, pricing shares at $40 each. The Swedish buy-now, pay-later company exceeded its marketed range of $35 to $37 per share.
The fintech giant raised $1.37 billion from the offering. This values Klarna at $15.1 billion ahead of its NYSE debut.
Trading begins Wednesday morning under the ticker symbol KLAR. The company will offer 34.3 million shares, representing 9% of total outstanding shares.
Klarna’s IPO comes after months of delays. The company originally filed registration documents in March 2025.
President Trump’s tariff policies disrupted the initial timeline. Market volatility in April forced Klarna and other companies to postpone their public debuts.
The offering leads a packed IPO week. Seven companies plan to go public in New York by Friday, marking the busiest week for new listings in years.
BNPL Market Position
Klarna operates in the competitive buy-now, pay-later sector. The company allows customers to split purchases into installments without traditional credit checks.
Founded in 2005, Klarna has grown into a BNPL leader. The service gained popularity during the pandemic as online shopping accelerated.
The company faces competition from U.S. rival Affirm, which trades at a $29 billion valuation. Affirm’s shares have surged 45% this year.
Klarna focuses on smaller transactions with an average order value of $101. This contrasts with Affirm’s $276 average order value for larger purchases.
The Swedish company operates in 26 countries worldwide. The United States represents its largest market by volume.
Financial Performance
Klarna reported mixed recent results. The company posted a $52 million net loss in Q2 2025, up from $18 million the previous year.
Customer defaults contributed to a larger $99 million Q1 loss. However, CEO Sebastian Siemiatkowski highlighted record on-time payment rates in Q2.
The company was profitable for its first 14 years. Recent losses stem from aggressive U.S. expansion and global growth investments.
At its 2021 peak, Klarna raised funds at a $45.6 billion valuation. This dropped to $6.7 billion by 2022 during the tech downturn.
The current $15.1 billion IPO valuation represents a recovery. Market analysts called the conservative pricing strategy effective for generating investor demand.
Klarna holds full banking licenses in Europe and offers credit and debit card services beyond BNPL. The company processed record transaction volumes in Q2 2025.
