(Reuters) – Swedish fintech firm Klarna disclosed on Friday that its revenue jumped 24% in 2024 as the buy now, pay later pioneer made public its filing for a much-anticipated U.S. stock market listing.
The company, which reshaped online shopping through its short-term financing model, drew investor attention as its valuation soared from $5.5 billion to $46.5 billion in just two years, fueled by three funding rounds between mid-2020 and 2021.
Its revenue grew to $2.81 billion in the year ended Dec. 31, compared with $2.28 billion, a year earlier.
The BNPL market is projected to surpass $160 billion by 2032, with retailers such as Walmart, Target and Amazon joining fintech firms such as Klarna, Affirm and Block to offer the service and attract younger, credit-averse shoppers.
Klarna reported a profit of $21 million, or 1 cent per share, in 2024, compared with a loss of $244 million, or 69 cents per share, a year ago.
CEO Sebastian Siemiatkowski had considered a direct listing – a route that avoids selling new shares and the costs of a traditional IPO – in 2021.
But, the Sequoia Capital-backed company shelved the plan and instead raised funds at a sharply reduced $6.7 billion valuation.
The latest move comes as stock market volatility, driven by renewed recession fears and uncertainty over President Donald Trump’s tariffs, threatens to stall a recovery in the IPO market.
The company has partnered with major global brands, including cosmetics retailer Sephora, sporting goods giant Nike, and rental booking platform Airbnb.
It expects to trade on the New York Stock Exchange under the ticker symbol “KLAR.”
Goldman Sachs, J.P. Morgan and Morgan Stanley are the lead underwriters.
(Reporting by Arasu Kannagi Basil and Manya Saini in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur)
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