Artificial intelligence (AI) is moving rapidly with the evolution of generative AI and large language models. Over the past couple of years, tools like ChatGPT and Gemini have transformed how we interact with technology. This has spurred visions about how businesses could leverage this technology to transform industries.
One company that has leveraged AI to enhance shopping and customer experience is Klarna, the Swedish buy now, pay later ( BNPL ) company. The company has incorporated AI into its business to help deal with customer inquiries and other payment things, and it could be going public as soon as this year.
Here’s what investors should know about Klarna , which could be one of the largest initial public offerings in 2025. Image source: Getty Images. Klarna is a Swedish fintech with a vast global reach
Klarna, a pioneering Swedish fintech company established in 2005, aims to innovate how consumers approach shopping. One of its flagship offerings is its BNPL payment solutions tailored for e-commerce. By offering flexible and convenient payment options, Klarna simplifies the shopping experience for consumers while helping merchants boost sales potential.
Competition in the space is heating up as more people use BNPL , with companies like Affirm , Block (which owns Afterpay), and PayPal all offering installment loans of their own.
For this reason, Klarna has evolved beyond BNPL into a one-stop spot for online shopping, seamlessly guiding consumers from browsing to checkout. Klarna seeks to capture an edge by leveraging AI to gather extensive insights into consumer behavior, refine behavioral models, and craft a shopping experience tailored to each user’s preferences.
The company boasts a vast global presence, operating in 26 countries with a network of approximately 575,000 merchants. With around 85 million active customers, Klarna has become a significant player in the fintech landscape. It’s been a roller coaster ride for the fintech
Klarna’s journey has not been without its challenges. In 2021, the company raised $639 million, which gave it a peak private market valuation of $45 billion. However, the economic landscape shifted, and challenges emerged in 2022 and 2023 as interest rates rose in response to […]
This Artificial Intelligence (AI) Fintech Could Be One of The Largest IPOs in 2025
