Klarna, the buy now, pay later lender that’s headed for an initial public offering (IPO), announced on March 20, 2025, a significant partnership with DoorDash, marking an important milestone in both companies’ growth trajectories. This collaboration enables DoorDash customers to utilize Klarna’s BNPL options, introducing flexible payment methods for meals and groceries. Users can now either pay in full at checkout, split their payments into four interest-free installments, or defer payments to dates that align with their pay schedules.
This partnership is DoorDash's first BNPL alliance in the U.S. and comes as Klarna prepares for its public listing on the New York Stock Exchange. Klarna's recent prospectus filing reveals that the company, headquartered in Sweden, reported remarkable growth, with revenues rising by 24% to $2.8 billion in 2024, following an adjusted operating profit of $181 million, which is a significant turnaround from the previous year's loss of $49 million.
As of March 19, 2025, the sentiment around Klarna's IPO has sparked cautious optimism among investors, with hopes that this offering signals the end of a prolonged drought in tech IPOs. According to the Financial Times, Klarna aims to raise more than $1 billion at a $15 billion valuation, while CoreWeave, another notable player in the tech realm, plans to raise $4 billion at a valuation exceeding $35 billion, making it one of the largest tech market debuts expected this year.
This growing interest in tech IPOs is further bolstered by Google’s recent announcement to acquire cybersecurity firm Wiz for $32 billion, raising additional hopes of a revitalized IPO market. At the same time, previous concerns about the economic impacts of recent tariff decisions made by the Trump administration continue to linger among small and medium-sized businesses (SMBs).
Klarna's chief commercial officer, David Sykes, expressed enthusiasm about the collaboration, stating, “Our partnership with DoorDash marks an important milestone in Klarna's expansion into everyday spending categories.” The merger not only enhances Klarna's offerings but also increases accessibility for consumers looking for flexible payment options amid economic uncertainty.
As Klarna continues to evolve, it has established robust connections with a network of 675,000 merchant partners across 26 countries, reinforcing its position as a global leader in the BNPL sector. Moreover, CNBC recently reported that Klarna will also be the exclusive provider of BNPL loans for OnePay, a fintech company backed by Walmart.
The growing adoption of BNPL services contrasts with the reservations expressed by many in the business community regarding recent tariff-related challenges. Data from PYMNTS Intelligence indicates that a staggering 72% of SMBs perceive tariffs as detrimental due to potential price increases, a concern that notably heightens for business owners well-informed about these trade policies.
Despite the looming shadow of economic uncertainties, Klarna and DoorDash's partnership represents a pivotal shift in consumer payment options, enhancing the user experience while signaling strong investor interest in tech companies. This evolving landscape underscores the adaptability of these businesses in response to consumer needs, as the financial market could soon witness a fresh wave of interest in public offerings.
The convergence of Klarna’s strategic partnerships and robust market performance might not only help the firm achieve its ambitious IPO goals but also signal a potential renaissance in tech listings, showing that despite challenges, innovative solutions continue to facilitate progress and growth in various sectors.
