Klarna Targets $15 Billion Valuation in U.S. IPO

Klarna Group Plc has publicly filed for a U.S. initial public offering (IPO), targeting a valuation of $15 billion, amid challenging market conditions for public debuts. The Swedish fintech company, known for its 'buy now, pay later' model, reported a significant turnaround in 2024 with a net profit of $21 million, reversing a $244 million loss from the previous year, alongside a 24% revenue increase to $2.81 billion. Klarna's anticipated IPO, one of the largest financial listings this year, reflects its strong growth trajectory and resilience after its valuation plunged following the 2021 venture capital bubble burst. The company plans to list on the New York Stock Exchange under the symbol 'KLAR', with Goldman Sachs, JP Morgan, and Morgan Stanley leading the underwriting. Klarna has gained investor attention due to its AI innovations and partnerships with major global brands, despite volatile market conditions driven by recession fears. The IPO proceeds are expected to bolster Klarna's expansion and technological advancements, positioning it competitively in the rapidly growing BNPL market projected to exceed $160 billion by 2032.