Klarna’s $15B IPO marks new chapter for buy now, pay later pioneer

Core Insights - Klarna, a Swedish fintech company known for its buy now, pay later services, is set to IPO on Wednesday, offering over 34 million shares at $40 each, potentially valuing the company at around $15 billion [1][2] - This valuation marks a significant decline from its peak valuation of $46 billion four years ago during the pandemic-driven surge in buy now, pay later services, but reflects a more stable market environment [2] Company Background - Klarna was founded nearly 20 years ago and has evolved into a prominent payment option globally, positioning itself as a viable alternative to traditional payment giants like Visa and Mastercard [2][6] - The company's cofounders, including Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, are noted for their transformative vision and operational capabilities, which attracted early investors [5] Investment Perspective - Mattias Ljungman, an early investor in Klarna, emphasizes the company's unique approach to payment processing, which involves creating separate rails for commerce rather than competing directly with established payment networks [5] - Klarna's platform offers merchants enhanced insights into customer behavior and purchase history, facilitating targeted marketing and potentially increasing sales, thus acting as a "conversion engine" for businesses [6]