Fintech Buy Now, Pay Later (BNPL) company Klarna has had quite the showing for its Initial Public Offering (IPO). Klarna said on Tuesday that it has raised $1.37 billion in its U.S. initial public offering, setting the stage for a market debut that could set the trend for high-growth fintech listings.
The Sequoia Capital-backed company and some of its existing investors sold 34.3 million shares at $40 each, above the targeted range of $35 to $37.
Reuters had reported earlier, citing two sources, that the IPO values Klarna at $15.11 billion — a significant drop from the more than $45 billion valuation it notched in 2021 after a rapid ascent as a BNPL leader.
READ: Klarna plans for $1 billion IPO as soon as next week (March 7, 2025)
Klarna is a leading global BNPL fintech company founded in Sweden in 2005. It allows consumers to make online purchases and pay for them later in installments, often interest-free, providing a flexible alternative to traditional credit.
Klarna’s services appeal especially to younger consumers who prefer manageable payments over credit cards. However, the BNPL industry, including Klarna, faces increased regulatory scrutiny globally due to concerns over consumer debt and financial transparency. Despite these challenges, Klarna continues to innovate with features like personalized shopping, budgeting tools, and enhanced customer protections, aiming to reshape the future of retail payments.
“The sector is highly competitive and rapidly evolving, and brand recognition, where Klarna remains strong, is often as critical as (the) business model,” said Kat Liu, vice president at IPO research firm IPOX.
“While the market is open again to fintech listings, companies will be judged quickly on their ability to balance growth with profitability in a tougher macro backdrop,” said Rudy Yang, senior analyst at PitchBook.
Klarna will start trading on the New York Stock Exchange under the symbol “KLAR” on Wednesday.
Klarna’s public debut demonstrates strong investor confidence in its long-term potential and brand strength. The IPO highlights the increasing maturity and competitiveness of fintech, where market participants are now under greater pressure to balance rapid growth with sustainable profitability amid challenging economic conditions.
For Klarna specifically, going public provides vital capital to fuel innovation and expansion, especially in the face of rising regulatory scrutiny around consumer debt and financial transparency in the BNPL space. Klarna’s continued focus on enhancing customer experience through personalized shopping and budgeting tools positions it well to maintain its leadership despite intensifying competition. Its entry onto the New York Stock Exchange also signals growing acceptance of European fintech firms in the U.S. market, potentially paving the way for further cross-border growth.