Klarna Revives IPO Plans With $14 Billion Target

Swedish digital bank/pay later provider Klarna has reportedly resurrected its plan to go public.

The company is aiming for a valuation of between $13 billion and $14 billion with its U.S. initial public offering (IPO) next month, Reuters reported Tuesday (Aug. 26), citing two sources familiar with the matter.

Klarna announced March 14 that it filed to go public with the Securities and Exchange Commission (SEC). But weeks after the announcement, the company, like several other FinTechs, put its IPO plans on hold following the market shakeup triggered by widespread U.S. tariffs.

The company had also looked at going public in 2021 but decided not go forward with that plan.

A spokesperson for Klarna declined to comment when reached by PYMNTS.

According to the report, sources said the shares sold in the offering could be priced at between $34 and $36 as early as this week.

As Reuters notes, this would be a significant drop from the valuation of almost $50 billion Klarna had targeted in 2021, and the more than $15 billion it was reportedly aiming for earlier this year. One of the sources told Reuters Klarna is aiming to raise nearly $1 billion from the IPO.

Research by PYMNTS Intelligence shows that Klarna holds the largest share of the buy now, pay later (BNPL) market in the U.S. at 26.2% followed by Afterpay , with an estimated 21.9% share, and Affirm , which has a market share of 19.3%.

The company’s IPO plans come as BNPL offerings remain prevalent in the lives of American consumers, with 43% telling PYMNTS they would cancel a payment or purchase if pay later options were unavailable, and 42.4% saying they’d choose a cheaper product or service.

Additional research shows the plans are popular among people living paycheck to paycheck, with 65% of people who struggle to pay monthly bills reporting that they used BNPL last year. The same holds true for 60% of those who live paycheck-to-paycheck but are able to keep on top of their monthly financial obligations.

“These consumers see more of their paychecks eaten up by increases in housing, grocery and insurance expenses,” PYMNTS CEO Karen Webster wrote last month.

“Splitting a $300 unexpected medical bill or a $400 utility expense across a few pay cycles makes it manageable without taking on revolving debt, borrowing from family or friends, or worse. For these households, installments provide structure and stability amid irregular incomes and rising fixed costs.”