Klarna Group launched its initial public offering on Wednesday on the NYSE. With expectations for the Klarna IPO running high, shares in the provider of "buy now, pay later" (or BNPL) consumer financing closed up nearly 15%, though shares gained over 40% at one point.
Klarna's underwriters priced the company's shares at 40, above the expected range of 35 to 37. On the stock market today, Klarna stock advanced 14.6% to close at 45.82. During Wednesday's session, Klarna stock hit a high of 57.20. BNPL firms compete with credit card issuers by offering installment payment plans.
The Swedish payments company raised $1.37 billion in the Klarna IPO, giving the fintech company an initial valuation of $15.1 billion. Venture firms backing Klarna include Sequoia Capital.
Klarna IPO: Competition Heats Up
Klarna competes in the "buy now, pay later" consumer financing market vs. Affirm Holdings, Block's Afterpay, PayPal Holdings, Sezzle and many others. PayPal plans to step up BNPL marketing.
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.
In its IPO filing, Klarna 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."
Meanwhile, Affirm stock has advanced 41% in 2025.
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