COLUMBUS, Ohio—Klarna has taken a major step toward its long-awaited U.S. initial public offering—the company publicly filed its prospectus with the Securities and Exchange Commission (SEC), revealing a significant financial turnaround, Fintech Weekly reported.
Klarna reported a 24% increase in revenue, reaching $2.81 billion in 2024, and a net profit of $21 million—its first profitable year after heavy losses in previous periods, Fintech Weekly said.
The fintech firm, a pioneer in the buy now, pay later (BNPL) sector, aims to raise at least $1 billion through its IPO. Bloomberg reported that Klarna is targeting a valuation of more than $15 billion, Fintech Weekly said.
As CUToday.info reported, Klarna last year added a new twist to its BNPL offerings—and the move could siphon deposits away from financial institutions, one analysis is suggesting.
The company is rolling out new products that could make its BNPL offerings more enticing to use.
The company is offering consumers in the U.S. and 11 European countries the ability to store money in a Klarna “balance” account, where they can deposit money directly from their bank account, Tech Crunch reported.
They can use the money to pay for purchases in full or to pay for their installments when they use Klarna’s BNPL service, the report added.