Klarna Group Plc and its shareholders are making another push into the public markets, aiming to raise up to $1.27 billion with a revived IPO in New York.
The company had delayed its earlier attempt because of market volatility earlier this year, but renewed investor confidence and strong recent tech IPOs have encouraged the Swedish fintech firm to give it another go.
BNPL giant targets $14 billion
As per the regulatory filings, Klarna is planning to sell 34.3 million shares at $35 to $37 each, which could put the company’s value at around $14 billion.
That’s a lot lower than its pandemic peak, but it shows the sector is bouncing back. The IPO will list on the New York Stock Exchange under the ticker KLAR, with Goldman Sachs, J.P. Morgan, and Morgan Stanley handling the deal.
Klarna, best known for its buy now, pay later service, had put its earlier IPO on hold because of market swings, geopolitical tensions, and tariffs on global trade.
The company’s valuation shot up from $5.5 billion to $46.5 billion between 2020 and 2021, thanks to three big funding rounds and a pandemic-driven boost in online shopping.
By the end of June, it had 111 million active users across 790,000 merchants in 26 countries, showing it’s got the scale for a major tech listing.
The company is also teaming up with big retail names like Zara, H&M, and Sephora, making itself more than just a lender as it is aiming to be a lifestyle platform.
Klarna’s recent results show the company feeling the costs of rapid growth. It reported a net loss of $153 million on $1.52 billion in revenue for the first half of this year, up from a $38 million loss on $1.33 billion during the same period in 2024.
Executives say the increase in loan reserves isn’t about customers defaulting, and they stress that the company’s credit controls are still solid even as it expands.
Klarna’s comeback: Caution or opportunity?
Analysts are divided on Klarna’s IPO comeback as many think the $14 billion target valuation makes sense, given industry challenges and the company’s big losses, especially after fintech valuations dropped sharply from their pandemic-era peaks.
Others see potential in Klarna’s large user base and global merchant network, with the BNPL model still popular among younger consumers, and expansion into digital banking could open up new revenue opportunities.
Some analysts are more cautious, pointing to Klarna’s rising net losses and higher loan reserves as signs of credit risk, especially with consumers facing inflation and higher interest costs.
BNPL products are also under increasing regulatory scrutiny, and competition from Affirm, PayPal, and traditional banks is heating up, putting pressure on margins and growth.
While Klarna’s wide reach and strong consumer engagement are clear strengths, many analysts warn that recent tech IPOs have seen volatile trading after listing, as investor excitement meets the reality of operations.
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