Klarna IPO: Revenue, Users, Valuation & How to Invest

What is Klarna and how does it work?

Klarna is one of the world’s leading fintech companies in digital payments and Buy Now, Pay Later (BNPL). Founded in Sweden in 2005 as a PayPal alternative, it really took off after introducing BNPL services in 2016. Today, Klarna has approximately 111 million active users across 26 countries and partners with nearly 790,000 merchants, including prominent names such as Walmart, eBay, and Stripe.

Its appeal lies in payment flexibility. Depending on where you live, you can either delay payment or split purchases into instalments. In the UK, Klarna lets you pay in three interest-free instalments or settle the full amount within 30 days. In the US and markets like Australia, purchases are usually divided into four interest-free instalments over six weeks, with longer financing options also available.

Although it isn’t a credit card, Klarna is a form of consumer credit. Signing up and making a purchase often involves a credit check, so it’s important to use it responsibly.

Financially, Klarna continues to grow. In Q2 2025, it reported $823 million in revenue and processed $31.2 billion in transactions, up 25% year-on-year. However, it also posted a net loss of $52 million due to higher costs and restructuring.

Regulation is also tightening. From July 2026, BNPL providers in the UK will be subject to the Financial Conduct Authority (FCA), which will require affordability checks, clearer terms, and enhanced consumer protections.

Klarna Key Company Facts

Klarna Company Statistics

Below is a breakdown of some key figures, including Klarna’s revenue, estimated value, and end-user/merchant numbers.

Revenue estimates for Klarna

Source: Company Data

Klarna profit/loss

Source: Company Data

Klarna’s gross merchandise volume (GMV)

Source: Company Data

Number of Klarna users

Source: Company Data

Number of Klarna merchants

Source: Company Data

Estimated Klarna valuation

Source: Techcrunch.com

Klarna’s competitors

Only a few fintech companies are successfully operating within the BNPL (buy now, pay later) space. Here are some of the most notable competitors to Klarna:

• Afterpay – one of the biggest global players, now owned by Block (formerly Square).
• Affirm – Klarna’s strongest U.S. rival, with around 22 million users and 358,000 merchant partners.
• PayPal (Pay Later / Pay in 4) – very strong in the U.S., used by over two-thirds of BNPL consumers there.
• Zip, Sezzle, Splitit, GoCardless – still active and relevant, though on a smaller scale compared to the top players.:
• Apple Pay Later – Apple entered the BNPL space in the U.S., becoming a big name quickly.
• Zilch – a UK-based BNPL company, FCA-regulated, growing fast with millions of users.
• ViaBill, Perpay, OpenPay – other providers gaining traction in specific markets.
• Laybuy – previously a competitor, but has since been acquired by Klarna.

Who are the biggest investors in Klarna?

Klarna has the backing of some big investors, banks, and venture capitalists (VCs), such as:

• Sequoia
• Softbank
• BlackRock
• Dragoneer
• Silver Lake
• Bestseller
• Commonwealth Bank of Australia
• Permira
• Chrysalis Investments
• GIC
• Canada Pension Plan Investment Board
• Mubadala Investment Company

When is the Klarna IPO?

Back in 2021, Sebastian Siemiatkowski, the chief executive of Klarna, suggested that an initial public offering (IPO) was approaching, stating that it “could happen this year, maybe next year,” and that a listing was likely in the near future. At the time, however, no formal IPO process had begun.

In the years that followed, Klarna repeatedly delayed its public debut. The company explored a U.S. listing and took concrete preparatory steps, but in April 2025 those plans were temporarily paused amid volatile market conditions and uncertainty driven by new global trade tariffs.

Later in 2025, market conditions improved sufficiently for Klarna to move forward. The company ultimately completed its IPO in September 2025, marking a major milestone after several years of speculation and postponements. The listing transformed Klarna into a publicly traded company and provided long-awaited clarity for investors.

Klarna’s path to the public markets was shaped by significant valuation swings. After reaching a peak valuation of more than $45 billion in 2021, the company saw its value fall sharply during the 2022 tech downturn. By the time of its IPO, Klarna’s valuation reflected a more mature and sustainable business, rather than the exuberant pricing seen during the pandemic-era boom.

With the IPO now complete, investor focus has shifted away from when Klarna would go public to how it will perform as a listed company, particularly its ability to balance growth, profitability, and risk management in a highly competitive fintech landscape.

How to invest and buy shares of Klarna

Following the Klarna IPO, investors are now free to buy and sell the newly listed shares on the open market. Klarna stock is accessible through several major online brokerage platforms, including Interactive Brokers and eToro, both of which are widely regarded as low-cost and beginner-friendly options.

Founded in 1978, the IBKR platform lets you access over 150 market destinations in 33 countries and trade any asset you may be looking for: Stocks, Bonds, ETFs, Forex, Funds, Commodities, Options, Futures, CFDs, Cryptos Futures, and even tiny small companies (a.k.a micro caps).

If you want to buy Klarna stock, here’s how you can buy shares using Interactive Brokers:

1. Open a trading account with Interactive Brokers.
2. Deposit funds into your account.
3. Once it’s available, search for the Klarna stock (ticker: KLAR)
4. Place the type of order you wish to use (e.g. market, limit, stop etc.).
5. Once you’ve bought your desired number of Klarna shares, continue to monitor performance.

If you’d like to learn more about the IBKR platform, check out our full-length Interactive Brokers review.

Founded in 2006 in Israel, eToro now has over 35 million customers worldwide. The platform is widely known for its social and copy trading features. It allows users to trade stocks, forex, commodities, cryptocurrencies, CFDs, and ETFs.

Here’s how you can buy Klarna shares using eToro:

1. Open an account with eToro.
2. Head to the ‘Markets’ page, and select ‘Stocks’.
3. Search for the Klarna stock and select ‘Trade’.
4. Next, hit ‘BUY’.
5. Choose how much you want to invest in Klarna or the number of shares you want to buy.
6. Select your leverage (or ensure that leverage is set to X1).
7. Decide on a take-profit parameter if you want to automate a future sale of your Klarna stock.
8. Finally, hit ‘Open Trade’.

If you’d like to learn more about eToro, check out our in-depth eToro review.

Bottom line on investing in the Klarna IPO

The Klarna IPO was long expected to be a landmark moment for the fintech sector and when it finally arrived, it marked the end of a turbulent journey. At its peak in 2021, Klarna was valued at more than $45 billion, making it one of the most valuable fintech companies in the world. That momentum, however, reversed sharply during the 2022 tech downturn, with the company’s valuation falling to around $6.7 billion as investors moved away from loss-making growth stocks.

In the years that followed, Klarna focused on stabilisation and efficiency. The company returned to profitability in 2024, continued to grow revenues, and strengthened its core BNPL offering. By the time of its IPO in 2025, Klarna was valued well below its pandemic-era peak, but on a far more sustainable footing, reflecting a business that had prioritised margins, cost control, and operational discipline.

Now publicly listed, investor attention has shifted from speculation around when Klarna would go public to how it will perform as a listed company. Ongoing growth is supported by the firm’s global scale, strong consumer brand, and partnerships with major merchants and platforms. At the same time, Klarna operates in an increasingly competitive environment, facing established rivals such as Affirm, Afterpay, PayPal, and newer offerings like Apple Pay Later.

Despite these challenges, Klarna remains one of the strongest names in the BNPL sector. Its extensive merchant network, tens of millions of active users, and improving financial performance provide a solid base as it enters life as a public company. Whether it can deliver sustained profitability and long-term shareholder returns will now be judged quarter by quarter, not by IPO rumours, but by results.