Klarna Announces IPO Aspiring for US$14 Billion Valuation

Klarna is preparing for its long-awaited initial public offering, which has been approved to list on the New York Stock Exchange under the ticker symbol “KLAR.” Widely known as a buy now, pay later (“BNPL”) company, Klarna’s product allows consumers to divide payments into interest-free installments. As of June 30, 2025, the fintech tool served 111 million consumers and 790,000 merchants across 26 countries.

The Swedish firm set its sights on a US$14 billion valuation in its IPO this week, roughly 69% below its US$45.6 billion peak valuation from June 2021. Shares are expected to be priced between US$35 and US$37.  

In recent months, Klarna has worked to position itself not just as a BNPL firm, but as a more comprehensive digital retail bank. To this end, the company’s efforts are supported by its longstanding banking credentials; Klarna has held a banking license in the European Union since 2017 and even offers personal bank accounts in Germany. The firm has also been implementing deposit-taking accounts and debit cards across both the United States and Europe.

Klarna’s Q2 revenue increased by 20% year-over-year to US$823 million. Despite this, the company reported a net loss of US$53 million in the second quarter of 2025. According to the finance outlet Fortune, a rise in tariff-induced inflation could hinder economic growth and increase the demand for BNPL services. Fintech companies such as Klarna are increasingly capturing market share from traditional banks with their flexible payment solutions and digital-first platforms, which resonate with younger users.

Klarna’s upcoming IPO represents a major test for one of the most prominent names in the BNPL space. Klarna’s public debut will be closely watched as a barometer for the broader BNPL and fintech market.

Author: Arjun Prasad, 2025/2026 Articling Student-at-Law