Investors are buzzing about Klarna's anticipated initial public offering (IPO) in 2025, which could significantly impact the buy now, pay later (BNPL) landscape, currently dominated by players like Affirm Holdings. Klarna, a Sweden-based fintech, was valued at $6.7 billion during its last funding round in 2022, and projections suggest its IPO could raise that valuation to between $15 billion and $20 billion. The company has enlisted top financial institutions, including Goldman Sachs and JPMorgan, to facilitate the listing. While Affirm primarily operates in the U.S., Klarna's strength lies in Europe, boasting a customer base of over 150 million and handling around 2 million transactions daily. Analysts note that Klarna's gross merchandise volume is significantly higher than Affirm's, yet Affirm is more profitable. As both companies leverage AI to enhance efficiency, Klarna's workforce has already been reduced by over 20%. The competition is fierce, with Klarna also integrating its services with Apple Pay to further expand its reach.
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