The Swedish fintech company Klarna has moved forward with its much-awaited US IPO by publicly releasing its F-1 prospectus on Friday. This document provides crucial insights into Klarna’s business operations and financial standing. According to a Bloomberg report published last week, Klarna IPO aims to secure at least $1 billion through this public offering, targeting a valuation of approximately $15 billion.

In its latest financial disclosures, Klarna highlighted significant improvements, recording revenues of $2.81 billion in 2024, a substantial increase of 24% compared to the previous year. This is especially crucial as the company achieved profitability for the first time, reporting a net profit of $21 million after enduring substantial losses in prior periods.

However, specific details regarding the number of shares to be offered and their anticipated price range have not yet been disclosed. Investors and market watchers will have to wait until these critical aspects are defined, typically roughly a month or longer after the initial filing, to gauge whether Klarna can successfully meet its targeted fundraising goals.

Key Takeaways

• The Swedish fintech company has filed for an IPO in the US, aiming to raise at least $1 billion. This move comes as Klarna seeks to capitalize on its recent financial rebound and strengthen its position in the competitive BNPL market.
• Klarna reported revenues of $2.81 billion in 2024, reflecting a 24% increase from the previous year. Notably, the company achieved profitability for the first time, recording a net profit of $21 million, a significant turnaround from its $244 million loss in 2023.
• Ahead of the IPO, Klarna secured an exclusive partnership with Walmart, replacing Affirm Holdings as its BNPL provider. This collaboration is expected to expand Klarna’s reach and boost its market presence in the US.
• While Klarna’s IPO could set the tone for other fintech listings, it faces challenges from intensifying competition and growing regulatory scrutiny. Rival firms such as Affirm, Afterpay, and PayPal aggressively vied for market share, adding pressure on Klarna to maintain its growth momentum.

Klarna IPO For $15 Billion Valuation: A Bold Move Amidst Fintech Volatility

Klarna, the Swedish fintech giant renowned for its “buy now, pay later” (BNPL) services, has officially filed for an initial public offering (IPO) in the United States. The company aims to raise over $1 billion through the offering, positioning Klarna’s valuation at approximately $15 billion. This IPO underscores Klarna’s resilience and adaptability in the fintech sector while highlighting the growing prominence of BNPL services in global markets.

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Klarna’s prominent shareholders include Sequoia Capital, co-founder Victor Jacobsson, and Heartland A/S, an investment firm led by Danish fashion entrepreneur Anders Holch Povlsen. Before Klarna’s recent offering, Sequoia Capital held 78.8 million shares, representing more than 5% of the company’s outstanding shares. Heartland A/S, associated with the family behind fashion retailer Bestseller, owned 37.1 million shares, while Jacobsson held 31.4 million.

Additionally, Klarna maintains strategic partnerships with several leading global brands, including cosmetics retailer Sephora, sportswear leader Nike, and accommodation platform Airbnb.

Established in 2005 by Sebastian Siemiatkowski, Victor Jacobsson, and Niklas Adalberth, Klarna set out to revolutionize online shopping by simplifying payment processes. The company’s BNPL model allows consumers to split purchases into manageable installments, offering an attractive alternative to traditional credit systems. Over the years, Klarna has significantly expanded its services, catering to over 150 million users globally and partnering with more than 675,000 merchants, including prominent retailers such as H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike, and Airbnb.

Klarna’s financial trajectory has experienced significant fluctuations. During the fintech boom in 2021, the company reached a peak valuation of $45.6 billion before suffering an 85% drop to $6.7 billion the following year amid a broader downturn affecting prominent fintech firms.

Despite these setbacks, Klarna demonstrated remarkable resilience. In 2024, the company reported revenues of $2.81 billion, marking a 24% increase compared to the previous year. More notably, Klarna achieved a net profit of $21 million in 2024—a substantial turnaround from the $244 million loss recorded in 2023.

In a bold move to consolidate its market position ahead of the IPO, Klarna secured an exclusive partnership with Walmart, effectively replacing its competitor Affirm Holdings. This collaboration aims to offer installment loan financing to Walmart’s vast customer base in the United States, enhancing the retail giant’s payment flexibility and potentially boosting sales. Following the announcement of this partnership, Affirm’s stock value dropped significantly by 11%, underscoring intense competitive dynamics within the BNPL market.

Klarna has engaged 15 banks for its upcoming IPO. Prominent financial institutions—including Goldman Sachs, JPMorgan, and Morgan Stanley—are the lead underwriters, supported by 11 financial institutions managing the offering. Klarna’s decision to list its shares on the New York Stock Exchange under the ” KLAR ” ticker comes amid market volatility and economic uncertainty.

The company confidentially submitted IPO paperwork to the U.S. Securities and Exchange Commission in November 2024, and the public filing occurred in March 2025.

The BNPL sector has experienced rapid growth, attracting significant attention from consumers and investors. Klarna’s IPO is poised to be a litmus test for the fintech industry’s ability to navigate public markets amid current economic headwinds. A successful listing could pave the way for other fintech companies to consider public offerings, signaling investor confidence in the sustainability of the BNPL business model.

While Klarna’s financial rebound and strategic partnerships are commendable, the company still faces considerable challenges. The BNPL industry is becoming increasingly crowded, with competitors such as Affirm, Afterpay (acquired by Block), and PayPal intensifying the race for market share. Additionally, regulatory scrutiny is mounting globally as authorities closely assess the potential implications of BNPL services on consumer debt and financial stability.

In June, Klarna agreed to sell its Checkout payments division for approximately $520 million and acquired assets from New Zealand-based Laybuy in August. The company has deepened its ties with major technology players, announcing in November that it would provide BNPL services to U.S. consumers using Google Pay—just one month after finalizing a similar partnership with Apple Inc.

Klarna also disclosed it is currently finalizing a partnership with a second banking institution in the U.S., enabling the rollout of its Fair Financing products. Additionally, negotiations with another payment network are underway, with plans to launch the Klarna card in selected markets. Klarna anticipates finalizing binding agreements with these partners by the first quarter and the second half of 2025.

The Swedish payments firm has further expanded its collaborations with mainstream payment processors, including Adyen NV, Xero, and Worldpay Inc. To further strengthen its market presence, Klarna entered a strategic partnership with JPMorgan Chase & Co.’s payment division, enabling approximately 900,000 merchant businesses to offer their customers Klarna’s instant credit solutions.

Conclusion

Klarna’s decision to move forward with its US IPO marks a significant milestone in the company’s evolution and highlights the growing influence of BNPL services in the financial sector. With plans to raise over $1 billion at a $15 billion valuation, Klarna is positioning itself as a key player in the increasingly competitive fintech landscape. The company’s financial turnaround—achieving profitability for the first time in 2024—demonstrates its resilience after facing substantial losses and a sharp valuation drop in previous years.

However, the IPO comes at a time of market uncertainty, and Klarna’s success will depend on investor confidence in the sustainability of the BNPL model. The outcome of this offering could serve as a benchmark for other fintech firms considering public listings. Moving forward, Klarna’s strategic partnerships, including its collaboration with Walmart and its ongoing expansion efforts, will be critical in maintaining its market position. Yet, with growing regulatory scrutiny and intensified competition, Klarna will need to continue demonstrating strong financial performance and adaptability to secure long-term growth and investor trust.

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