Klarna Completes U.S. IPO, Valued at $13 Billion
NEW YORK – September 11, 2025 - Klarna, the Swedish “buy now, pay later” giant, began trading on the Nasdaq Stock Market today, marking a important milestone in the company’s journey from a dissected fintech startup backed by the Wallenberg family too a publicly listed entity in the United States. The initial public offering (IPO) priced at $13 billion SEK (approximately $1.26 billion USD),a valuation considerably below its 2021 peak but a considerable recovery from recent lows.
The IPO signals a turning point for Klarna, which experienced a dramatic valuation swing over the past three years.Once valued at over SEK 500 billion during the 2021 tech boom, the company’s assessment plummeted to a low of SEK 70 billion following a crisis funding round in 2022. Today’s listing reflects a stabilization and renewed investor confidence, tho still falls short of earlier highs. The move to the U.S. market is a strategic effort to tap into a larger investor base and accelerate growth in its most crucial market.
Klarna’s path to the IPO has been marked by both rapid expansion and significant challenges. Founded in 2005, the company revolutionized the e-commerce landscape by offering consumers a flexible payment option, allowing them to split purchases into installments. Early backing from influential Swedish investors, including the Wallenberg family thru Investor AB, provided crucial capital for growth.
However, the “buy now, pay later” sector faced increased scrutiny amid rising interest rates and concerns about consumer debt. Klarna responded by focusing on profitability and strengthening its risk management practices. The company reported its first full-year profit in 2023, a key factor in building momentum for the IPO.
The IPO proceeds will be used to fund further expansion, especially in the United States, and to invest in new technologies. Klarna aims to solidify its position as a leading global payments provider and continue innovating in the rapidly evolving fintech space. The company’s shares are trading under the ticker symbol “KLAR” on the Nasdaq.
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Klarna celebrated its IPO with a display on Wall Street. Photo: TT News Agency
