Core Viewpoint - Klarna Group successfully launched its initial public offering (IPO) on the NYSE, with shares priced at $40, exceeding expectations, and experiencing significant trading activity shortly after the launch [1][2]. Company Summary - Klarna raised $1.37 billion in its IPO, achieving an initial valuation of $15.1 billion [2]. - The company reported total revenue of $3 billion for the year ending June 30, reflecting a year-over-year growth of 17% [4]. - Klarna experienced an operating loss of $225 million but reported an adjusted operating profit of $151 million, indicating a 29% decrease in operating loss and a 148% improvement in adjusted operating profit year-over-year [4]. Industry Summary - Klarna operates in the competitive "buy now, pay later" (BNPL) market, facing rivals such as Affirm Holdings, Block's Afterpay, and PayPal, which is increasing its marketing efforts in the BNPL space [3][4]. - Major credit card issuers, including Chase, are also entering the BNPL market, intensifying competition [3].
Klarna IPO Bursts Out of Gate With Nearly 15% Gain Amid BNPL Frenzy