Klarna, the Swedish buy-now-pay-later (BNPL) giant, began trading on the New York Stock Exchange on September 10, 2025, after raising $1.37 billion in its long-awaited initial public offering. The company and its investors sold 34.3 million shares at $40 each—above the marketed range of $35 to $37—valuing Klarna at $15.1 billion.
The IPO marks a significant milestone for Klarna, which was once valued at $45.6 billion in 2021 before experiencing an 85% collapse to $6.7 billion in 2022 amid inflation and rising interest rates. The successful listing reflects a broader rebound in the IPO market and conservative valuation strategies to attract investor demand. Samuel Kerr of Mergermarket noted, "It shows a continuing trend of issuers being conservative in valuation to garner investor demand and leave them wanting more."
Klarna reported $3 billion in revenue for the 12 months ended July 31, 2025, with a net loss of $100 million. The company has over 111 million active users and connects more than 790,000 merchants globally. Klarna's repayment rate stands at 99%, outperforming many credit card benchmarks, while BNPL industry-wide delinquencies remain below 2%, compared to over 7% for credit cards.
The BNPL sector continues to grow, with U.S. online spending reaching $82.4 billion in 2024, up 9.9% from 2023, and $56.3 billion spent between January and August 2025 alone. Despite regulatory scrutiny and competition from rivals like Affirm ($29B valuation) and Afterpay, Klarna's NYSE debut positions it as a key player in the expanding installment credit market.