Klarna Valued at $14.6 Billion After Investor Raises Stake’s Value

Chrysalis Investments increased the value of its stake in Klarna, reportedly giving the buy now, pay later (BNPL) provider an implied valuation of around $14.6 billion.

The shareholder boosted the value of its stake from 100.3 million pounds (about $130.1 million) in the second quarter to 120.6 million pounds (about $156.5 million), Bloomberg reported Monday (Oct. 28).

Chrysalis said it did so after seeing the share prices of Klarna’s listed peers increase, according to the report.

Affirm’s shares have gained 145% in the last year, while PayPal picked up 58%, the report said.

Klarna’s current implied valuation of $14.6 billion is up from $6.7 billion at the time of a 2022 funding round, but down from $45.6 billion in a 2021 funding round, per the report.

The move by Chrysalis comes as Klarna prepares for an initial public offering (IPO). Chrysalis said the next potential window for an IPO seems to be the first half of 2025, according to the report.

Klarna released half-year earnings in August that showed its revenues increasing 27% and its adjusted profits increasing to $66 million, compared to an adjusted loss of $45 million in the same period in 2023.

“Klarna’s massive global network continues to expand rapidly, with millions of new consumers joining and 68,000 new merchant partners,” Klarna CEO Sebastian Siemiatkowski said in an Aug. 27 press release. “As our merchant partners grow, so do we, evidenced by 38% year-over-year growth in U.S. revenues. By focusing on sustainable, profitable growth and leveraging AI to lower costs, we achieved adjusted operating income of [$66 million] as we build the commerce network of the next generation.”

Klarna launched a Gift Card Store in the United Kingdom Thursday (Oct. 24), enabling consumers to buy gift cards from brands like Airbnb, Argos and IKEA using Klarna’s BNPL products or its instant payment option, Pay Now. The company said it intends to expand this offering to additional European markets by the end of 2024.

On Oct. 17, Klarna said its flexible payment options are available to eligible Apple Pay users in the U.S. and the U.K. The offering will be expanded globally, with Canada set to be added in the coming months.