Company Overview - Klarna is set to debut on the stock market with an IPO, having sold 34.3 million shares at $40 each, resulting in proceeds of $200 million and a market value approaching $14 billion [2][8] - The company pioneered the buy now, pay later (BNPL) financing model, which has gained significant popularity over the last two decades [3][5] Market Context - Klarna's IPO was delayed from April due to market volatility caused by new tariffs, but the company has since expanded its services [4][5] - The BNPL sector has seen increased competition, with other firms like Affirm and Afterpay also offering similar services [6][8] Financial Performance - Klarna traditionally generated revenue by charging merchants for risk evaluation and through interest on short-term loans, but has recently diversified into more traditional banking products [5] - The estimated value of Klarna has varied significantly over the past few years, ranging from $6.7 billion to $45.6 billion [6] Competitive Landscape - Affirm, a key competitor, has a market capitalization exceeding $28 billion and reported $876 million in revenue last quarter [7]
Big-Name Buy Now, Pay Later Company Klarna Set to Go Public Today