The Blubber

Klarna, the buy now, pay later (BNPL) provider preparing for an initial public offering, announced on Thursday a new partnership with DoorDash, signaling further momentum for potential investors.

This marks DoorDash’s first BNPL partnership in the U.S., offering customers more payment flexibility. According to Klarna’s press release, DoorDash users can choose to pay in full at checkout, split payments into four equal interest-free installments, or schedule payments in alignment with their payday.

Headquartered in Sweden, Klarna filed its prospectus last week to go public on the New York Stock Exchange. The company reported a 24% revenue increase last year, reaching $2.8 billion, while adjusted operating profit rose to $181 million from a $49 million loss the previous year. CNBC reported Monday that Klarna will also serve as the exclusive BNPL provider for OnePay, the Walmart-backed fintech firm.

“Our partnership with DoorDash marks an important milestone in Klarna’s expansion into everyday spending categories,” said Klarna’s chief commercial officer, David Sykes, in the announcement.

Founded in 2005, Klarna stated in its prospectus that it now has 675,000 merchant partners across 26 countries. As one of the most anticipated IPOs of the year, its market debut comes after a prolonged period of limited public offerings.