Buy now, pay later pioneer valued at $15.1 billion amid strong investor demand
Klarna (KLAR), the Swedish fintech best known for its buy now, pay later (BNPL) services, will begin trading on the New York Stock Exchange on Wednesday after raising $1.37 billion in its long-anticipated initial public offering. The IPO was priced at $40 per share, above the company’s initial estimate of $35 to $37, underscoring robust investor appetite.
At the new price, Klarna is valued at approximately $15.1 billion. While that figure is well below its $45.6 billion peak valuation in 2021 following SoftBank’s investment, it is more than double the $6.7 billion valuation set during a 2022 private funding round, when payments firms were under pressure.
This marks Klarna’s second IPO attempt in 2025, after postponing plans in April due to market volatility tied to tariff announcements and a downturn in new listings. Its successful launch comes as New York experiences a surge in IPO activity, with Gemini Space Station, Figure Technologies, and Blackstone-backed Legence also set to debut this week.
The company joins a string of high-profile offerings this year, including Figma, Circle Internet Group, and Bullish. According to Renaissance Capital, 144 companies worth more than $50 million have gone public in 2025 so far, a 53% increase from the same period in 2024. Tech IPOs have raised more than $12 billion year-to-date.
Founded and led by CEO Sebastian Siemiatkowski, Klarna serves 93 million users and partners with more than 675,000 merchants worldwide. Its BNPL model, which allows consumers to split purchases into installments, has drawn both praise for flexibility and criticism over potential credit risks.
Still, Klarna reported strong repayment performance, with 99% of its 2024 loans paid on time, far outperforming U.S. credit card delinquency rates.
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