Sweden-based Klarna Group, a rival of Affirm Holdings in the buy now, pay later (BNPL) consumer financing market, aims to raise up to $1.27 billion in its initial public offering. Affirm stock has advanced 45% in 2025.
Consumer lending firms like Affirm and Klarna compete with credit card issuers by offering installment payment plans. In a regulatory filing on Tuesday, Klarna said it plans to offer shares priced between $35 and $37.
Klarna's last funding round in 2022 valued the financial technology company at $6.7 billion. The company will list its shares on the New York Stock Exchange.
"We have built one of the largest commerce networks in the world, measured by the number of consumers and merchants, serving approximately 111 million active Klarna consumers and approximately 790,000 merchants in 26 countries as of June 30, 2025, and facilitating $112 billion of gross merchandise volume in the last twelve months," the IPO filing said.
Klara said total revenue in the year ended June 30 was $3 billion, representing 17% year-over-year growth. Klarna said it had an operating loss of $225 million and adjusted operating profit of $151 million, "representing a 29% decrease and 148% improvement year over year, respectively."
Klarna, Affirm BNPL Battle
Meanwhile, Affirm stock ranks No. 17 in the IBD 50 roster of growth companies. Affirm operates mainly in the U.S. while Klarna's biggest market is Europe.
Klarna, started in 2005, recently snatched one of Affirm's biggest partners, retailer Walmart. Klarna's other retail partners include H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb.
Both Klarna and Affirm have new deals with Apple.
Aside from San Francisco-based Affirm, Klarna also competes versus Block's Afterpay, PayPal Holdings, Sezzle and many other BNPL providers. Many top credit card issuers, such as Chase, now offer their own version of BNPL, creating more competition.
While buy now, pay later remains its core business, Klarna also offers an instant payment method and has held its banking license since 2017. It offers various fintech services through its mobile app.
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