Klarna Aims to Raise $1.27 Billion in IPO, Enters Fierce BNPL Battle with Affirm

Klarna, a rival of Affirm in the buy now, pay later (BNPL) market, plans to raise up to $1.27 billion in its initial public offering (IPO). The Swedish fintech company aims to list its shares on the New York Stock Exchange, priced between $35 and $37. Klarna competes with Affirm, as well as other BNPL providers and credit card issuers, offering installment payment plans to consumers. The company had a total revenue of $3 billion in the year ended June 30, with an operating loss of $225 million.

Klarna, a prominent player in the buy now, pay later (BNPL) market, is set to raise up to $1.27 billion through its initial public offering (IPO). The Swedish fintech company aims to list its shares on the New York Stock Exchange, with a target price range of $35 to $37 per share [1]. Klarna's IPO comes at a crucial moment for the BNPL sector, as it competes with Affirm and other BNPL providers, offering installment payment plans to consumers.

The company's financial performance in the year ended June 30, 2025, highlights its growth trajectory. Despite an operating loss of $225 million, Klarna achieved a total revenue of $3 billion, underscoring its potential for profitability as it continues to scale [1]. Klarna's IPO is expected to provide investors with a glimpse into the company's strategic plans and financial health, as it navigates the competitive landscape of BNPL.

Affirm's recent earnings and strategic shifts have highlighted the maturation of the BNPL market. Affirm's Q2 2025 earnings report demonstrated a 33% year-over-year increase in revenue, with a GAAP earnings per share (EPS) of $0.20, a 75.9% beat over estimates [2]. The company's strategic recalibration, including the phasing out of its Walmart partnership and expanding its merchant base, signals a focus on long-term profitability over short-term volume. Affirm's ability to maintain profitability while losing a major retail partner underscores the sector's resilience and potential for growth.

Klarna's IPO is a significant milestone for the BNPL market, as it reflects the increasing investor interest and market maturity. The company's ability to compete with Affirm and other BNPL providers, offering flexible payment plans and a diverse range of financial products, positions it as a key player in the sector. As the BNPL market continues to grow, with projections of a 27% compound annual growth rate (CAGR) from 2025 to 2033, Klarna's IPO represents an opportunity for investors to capitalize on this expanding market [2].

References:
[1] https://www.ainvest.com/news/affirm-q4-earnings-pivotal-moment-bnpl-resilient-growth-2508/
[2] https://www.ainvest.com/news/affirm-earnings-surge-strategic-shifts-signal-tipping-point-bnpl-2-0-2508/