European payments Fintech Klarna has filed to raise $1.27 billion in an initial public offering (IPO). Founded in Sweden but now based in the UK, Klarna shares are expected to trade on the New York Stock Exchange (NYSE) under the ticker “KLAR.: The offering includes both selling shareholders and new issuance priced at $36/share. Klarna expects to raise around $1.27 billion at a valuation of approximately $14 billion.
Klarna is a European success story offering multiple digital services for its customers. According to the prospectus, Klarna has over 111 million users. In Sweden, their home market, approximately 83% of adults use Klarna as of June 30, 2025
Klarna claims to have one of the most extensive commerce networks in the world, measured by the number of consumers and merchants, including approximately 790,000 merchants in 26 countries, facilitating $112 billion of GMV [Gross Merchandise Value] in the last twelve months ended June 30, 2025.
Founded in 2005, Klarna quickly expanded across Europe, entering the US in 2019.
Services include Buy Now, Pay Later (BNPL), payment processing, shopping/price comparison tools, buyer protection, a subscription product, and more.
In 2017, Klarna received a full banking license from the Swedish Financial Supervisory Authority and is thus able to operate as a regulated bank in Sweden and the European Union. In the US, Klarna partners with Webank and has yet to gain a banking charter.
Like many early-stage firms, Klarna generated a net loss of $152 million for the six months ended June 30, 2025, and $244 million and $1,035 million in 2023 and 2022, respectively.
Klarna initially was expected to pursue an IPO this past spring, but put things on hold due to volatility. As the IPO market has opened up in the US, including for multiple Fintechs, the company decided to return to the market. At one point, Klarna had a valuation of around $50 billion, so the offering is a bit of a haircut from its previous valuation.
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