Overview

• Industry reports say Klarna is preparing a September U.S. listing targeting roughly $13 billion, down from a previously floated $15 billion.
• The latest quarter showed $824 million in revenue, up 20% year over year, with a pre-tax loss widening to $46 million from $19 million a year earlier.
• The company has lined up a $26 billion funding deal with Nelnet in the U.S. and a €1.4 billion structured facility from Santander in Europe.
• The flotation would test investor appetite for buy-now-pay-later as Klarna contends with skepticism of the model and ongoing brand criticism of its Pay in 4 offering.
• Competition from Affirm and PayPal looms as the company seeks to convince public markets of its growth prospects.