Core Insights - Klarna, a leading buy now, pay later (BNPL) company, successfully completed its initial public offering (IPO) with shares closing above the IPO price on their first trading day [1][6] - The company sold 34.4 million shares at $40 each, raising approximately $200 million and achieving a market capitalization of about $17.5 billion [2][6] - CEO Sebastian Siemiatkowski described the IPO as a "very natural" step for Klarna, which aims to disrupt retail banking in the coming decades [3][4] Company Performance - Klarna's shares opened at $52, peaked above $57, and closed at $45.82 on the first trading day [2][6] - For the quarter ending June 30, Klarna reported $823 million in revenue and $31.2 billion in gross merchandise value, with 111 million active customers [9] - The company has shifted towards offering more traditional banking products as BNPL growth has slowed, diversifying its revenue streams [7] Competitive Landscape - Klarna faces competition from other BNPL providers like Affirm and Afterpay, with Affirm's market capitalization at approximately $28.8 billion [8] - Klarna's estimated value has varied significantly over the past few years, ranging from $6.7 billion to $45.6 billion [8] - While Klarna's transactions are predominantly interest-free (98%), Affirm derives about 70% of its revenue from interest-bearing products [9][10]
Buy Now, Pay Later Company Klarna's Shares End First Session Above IPO Price