Klarna is synonymous with the “buy now, pay later” pattern of creating a purchase order and deferring fee till the top of the month or paying over interest-free month-to-month installments.
Nikolas Kokovlis | Nurphoto | Getty Images
Online lender Klarna priced its IPO at $40 per share on Tuesday, above its expected range, in a deal that values the Swedish firm at about $15 billion.
Klarna, recognized for its common purchase now, pay later merchandise, mentioned it raised $1.37 billion for the corporate and present shareholders, who wish to exit a portion of their long-held positions. The firm will checklist its shares on the New York Stock Exchange beneath the image “KLAR.”
The public markets have proven an elevated urge for food for tech IPOs of late, with firms like crypto agency Circle and software program vendor Figma hovering of their extremely anticipated debuts. Klarna, which competes with Affirm, was initially aiming to go public earlier this yr, however put its plans on maintain resulting from U.S. President Donald Trump’s April announcement of reciprocal tariffs on dozens of nations.
Widely recognized for its short-term, interest-free financing merchandise, Klarna has tried in latest months to rebrand itself as extra of a digital retail financial institution. Its IPO will likely be a test of Wall Street’s pleasure concerning the course of its enterprise.
Klarna disclosed a web lack of $53 million within the second quarter, widening from $18 million in the identical interval a yr go. Revenue climbed 20% from a yr earlier to $823 million over the stretch.
Klarna makes cash by charging retailers that use its online fee instruments a small payment on each transaction. It additionally generates earnings from curiosity on longer-term financing merchandise and late charges.
Of the full quantity being raised, $1.17 billion goes to shareholders with simply $200 million going to the corporate.
