Klarna is synonymous with the “buy now, pay later” trend of making a purchase and deferring payment until the end of the month or paying over interest-free monthly installments.
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Online lender Klarna priced its IPO at $40 per share on Tuesday, above its expected range, in a deal that values the Swedish company at about $15 billion.
Klarna, known for its popular buy now, pay later products, said it raised $1.37 billion for the company and existing shareholders, who are looking to exit a portion of their long-held positions. The company will list its shares on the New York Stock Exchange under the symbol “KLAR.”
The public markets have shown an increased appetite for tech IPOs of late, with companies like crypto firm Circle and software vendor Figma soaring in their highly anticipated debuts. Klarna, which competes with Affirm, was initially aiming to go public earlier this year, but put its plans on hold due to U.S. President Donald Trump’s April announcement of reciprocal tariffs on dozens of countries.
Widely known for its short-term, interest-free financing products, Klarna has attempted in recent months to rebrand itself as more of a digital retail bank. Its IPO will be a test of Wall Street’s excitement about the direction of its business.
Klarna disclosed a net loss of $53 million in the second quarter, widening from $18 million in the same period a year go. Revenue climbed 20% from a year earlier to $823 million over the stretch.
Klarna makes money by charging merchants that use its online payment tools a small fee on every transaction. It also generates income from interest on longer-term financing products and late fees.
Of the total amount being raised, $1.17 billion is going to shareholders with just $200 million going to the company.
WATCH: Everything you need to know about Klarna’s IPO