Klarna achieves $15 billion valuation in IPO triumph
- Klarna began trading on the NYSE, raising $1.37 billion through its IPO and achieving a valuation of $15.1 billion.
- It opened at $52, reaching a market cap of $19.6 billion, driven by strong investor demand.
- This IPO reflects the renewed enthusiasm for fintech companies in the stock market.
On September 9, 2025, Klarna, the Swedish fintech company known for its buy-now, pay-later financial model, commenced trading on the New York Stock Exchange under the symbol KLAR. This event marked a significant milestone for the company as it successfully raised $1.37 billion through its initial public offering with a total offering valuation of $15.1 billion. Klarna's initial public offering (IPO) price increased to $40 due to high investor demand, exceeding the previously stated target range of $35 to $37. The firm offered 34.3 million shares, with $200 million allocated to the company and the remaining $1.17 billion going to existing shareholders. As trading began, the stock opened at $52, giving Klarna a market capitalization of approximately $19.6 billion. This development highlights the growing investor enthusiasm for fintech IPOs, following the recent successful launches of Circle and Figma. Klarna's entry into the public market comes after it postponed its plans earlier this year due to tariff uncertainties. Since its establishment in Stockholm in 2005 and expansion into the American market in 2019, Klarna has carved out a significant presence in the fintech industry, particularly in the United States, which is its largest market. Initially recognized for its innovative buy-now, pay-later payment system, Klarna allows users to make purchases without covering the full amount upfront, offering flexible payment options. Despite significant user growth, profitability has been a persistent challenge for Klarna, particularly since 2019, as competition in the buy-now, pay-later sector has intensified. The firm reported profits for the first time last quarter, showcasing a departure from its previous pattern of losses. As of June 30, 2025, Klarna recorded a loss of $52 million on revenues of $823 million, a decrease from a $7 million loss on $682 million in revenue during the same period in 2024. Klarna's IPO was backed by prestigious financial institutions, including Goldman Sachs, JPMorgan, and Morgan Stanley.