Klarna is ready to start trading on the NYSE this Wednesday under the ticker “KLAR,” as the BNPL provider raised $1.37 billion in its U.S. initial public offering, with a valuation of about $15.1 billion. That marks a sharp drop from its Covid-era peak but begins a new chapter for the fintech’s trajectory, following in Affirm’s footsteps.

The Swedish Buy-Now-Pay-Later company and existing investors sold 34.3 million shares at $40 each, above the targeted range of $35 to $37. The IPO gives Klarna a total valuation of $15.1 billion, based on its 378 million outstanding shares—a significant decline from the more than $45 billion valuation it reached in 2021 during the surge in e-commerce demand.

Still, demand for the IPO is hot. The offering was oversubscribed by 25 times, according to a person familiar with the matter who asked not to be identified.

Klarna offers consumers multiple payment options on a purchase-by-purchase basis: paying in full immediately, delaying payment up to 30 days, splitting into interest-free installments, or extending repayment over six to 24 months with interest. Unlike credit cards, which consolidate spending into a single bill, Klarna provides flexibility and transparency, putting it in the same league as Affirm while maintaining a unique edge.

The company’s reach is broad, with more than 790,000 merchants and roughly 111 million active customers as of Q2 2025. GMV reached $105 billion in 2024, up 14% year-over-year, and $31.2 billion in Q2 2025 alone, up 19%.

However, the company is not profitable, as the BNPL provider continues its aggressive U.S. expansion. Klarna reported $1.5 billion in revenue in the first half of 2025, up 17% y/y, largely driven by interest income, though weighed down by rising credit losses. The company posted a $152 million loss for the period.

Sequoia Capital is expected to hold about 22% of the voting power after the offering, filings show. Danish billionaire Anders Holch Povlsen’s Heartland will have around 8.9%, cofounder Jacobsson about 8.8%, and CEO Siemiatkowski 7.4%.

At current valuation, the company trades at a P/S ratio of ~5, lower than competitor Affirm’s 8.2, implying more upside at the IPO price. Affirm went public in 2021, with its stock peaking at $176 during the pandemic spending boom, though it has since fallen by nearly half in the post-Covid period.