NEW YORK (AP) — Klarna priced its long awaited initial public offering at $40 a share late Tuesday, valuing the Swedish buy now, pay later company at more than $15 billion.
The valuation easily makes Klarna one of the biggest IPOs so far in 2025, which has been one of the busier years for companies going public. The $40 share price came in above market expectations, which called for Klarna to price its shares between $35 and $37 each.
Founded in 2005 as a payments company, Klarna entered the U.S. buy now, pay market in 2015 in partnership with department store operator Macy’s. Since then, Klarna has expanded to hundreds of thousands of merchants and has embedded itself in internet browsers and digital wallets as an alternative to credit cards. The company recently announced a partnership with Walmart.
Klarna’s most popular product is what’s known as a “pay-in-4” plan, where a customer can split a purchase into four payments spread over six weeks. The company also offers a longer-term payment plan where it charges interest.
The business model has caught on globally. The company said 111 million consumers worldwide have used Klarna for a purchase.
