BNPL

Upgrade, a fintech startup led by LendingClub’s founder, secured $165 million in funding, raising its valuation to $7.3 billion. Led by Neuberger Berman, this round marks Upgrade’s first capital raise since 2021, driven by its positive cash flow. Initially a personal loan provider, Upgrade has expanded to include diverse financial services like BNPL (through its Uplift acquisition). With annualized revenue exceeding $1 billion, Upgrade is considering an IPO within 12-18 months to bolster its balance sheet and provide employee liquidity. They are focusing on streamlining customer experience and targeting growth in home improvement and auto financing.

Klarna, the BNPL giant, debuted on the NYSE with shares surging 30% above the $40 IPO price, valuing the company at $15 billion. The IPO raised $1.37 billion. CEO Sebastian Siemiatkowski likened the event to a wedding, marking a milestone but highlighting ongoing challenges. Klarna’s strategic shift to banking services, particularly in the US, faces competition from Affirm and others. The BNPL sector is intensely competitive and faces increasing regulatory scrutiny, particularly in Europe. Sequoia, an early investor, saw significant returns, while SoftBank’s later investment faced valuation decline.

Klarna, the BNPL giant, priced its IPO at $40 per share, valuing the company at $15 billion. It raised $1.37 billion and will list on the NYSE as “KLAR.” The IPO reflects cautiously optimistic sentiment towards tech listings, despite economic uncertainty and competition. Klarna is expanding beyond BNPL to become a digital retail bank. While the company reported a recent net loss, revenue grew 20% year-over-year. $1.17 billion of the IPO proceeds will go to shareholders, and $200 million will go to the company.

Klarna, initially known for its BNPL model, is transitioning to a comprehensive digital bank ahead of its IPO. The IPO, expected to value Klarna at up to $14 billion, will test investor confidence in this pivot. Klarna faces the challenge of convincing investors of its neobank strategy, expanding banking services despite recent losses, while showing 20% YOY revenue growth. Its success hinges on demonstrating a path to profitability in a changing economic landscape, comparing itself with public peers like Affirm.

Klarna, the BNPL giant, is preparing for its NYSE IPO under the ticker “KLAR,” potentially raising $1.27 billion at $35-$37 per share, valuing the company up to $14 billion. Existing shareholders will offer a significant stake alongside Klarna’s new share issuance. Goldman Sachs, JP Morgan, and Morgan Stanley are joint bookrunners. Klarna’s Q2 revenue grew 20% to $823 million, but net loss widened to $53 million. The IPO marks a significant step for the fintech firm aiming to become a comprehensive financial “super app.”

Affirm (AFRM) shares jumped 12% after exceeding Wall Street expectations in its fiscal fourth quarter. Earnings reached 20 cents per share with a 33% year-over-year revenue increase to $876 million. Net income was $69.2 million, a stark contrast to last year’s loss. Affirm’s volume surged 44%, driven by partnerships with Shopify and Amazon, despite losing Walmart as a partner. The company issued strong fiscal 2026 guidance, highlighting growth in consumer transactions and the success of its Affirm Card, which saw GMV surge 132%. AI is also boosting merchant volume.

Affirm shares soared after reporting strong fiscal fourth-quarter results, beating expectations with EPS of 20 cents and revenue of $876 million. Revenue jumped 33% year-over-year, and gross merchandise volume increased by 43% to $10.4 billion. The company reported a net income of $69.2 million, a significant improvement from the previous year’s loss. Affirm projects first-quarter revenue between $855 million and $885 million. Despite facing competition from Klarna and Walmart’s shift, Affirm has partnerships with Amazon, Shopify, and Apple.