Klarna, the Swedish fintech giant best known for its buy now, pay later (BNPL) services, made a splashy entrance onto the New York Stock Exchange (NYSE) on September 10, 2025, marking one of the most anticipated public offerings of the year. The company’s shares opened at $52 apiece—an impressive 30% jump over its initial public offering (IPO) price of $40, set just the day before. The debut instantly valued Klarna at roughly $18 billion, a sharp increase from its $15.1 billion IPO valuation and a far cry from the $6.7 billion valuation it saw during a private funding round in 2022, as reported by CNBC and MarketWatch.
That opening surge, however, was just the start of what turned out to be a volatile first trading day. According to MarketWatch, shares soared as high as $57.20 in the early hours before settling back to $47—a reminder that even hotly anticipated IPOs can be subject to the unpredictable tides of the market. By the opening bell, shares were hovering near $46, still up about 17% from the IPO price, as Yahoo Finance noted. Despite the initial excitement, Klarna’s debut lacked the explosive momentum seen in other recent tech IPOs, such as Figma’s, which more than tripled from its offer price in July. Still, Klarna’s performance was strong enough to cement its place among the year’s most notable market entries.
The $1.37 billion raised in Klarna’s IPO was split unevenly: $1.17 billion went to existing shareholders cashing out a portion of their long-held positions, while only $200 million was directed to Klarna itself, according to CNBC. The company is now trading under the ticker symbol "KLAR" on the NYSE, further solidifying its presence in the U.S. market and setting the stage for what could be a transformative chapter for the Swedish firm.
Klarna’s public debut comes at a time when appetite for tech IPOs is rebounding. According to IPO research firm Renaissance Capital, 144 companies valued at more than $50 million have gone public so far in 2025—a 53% increase compared to the same period last year. Tech IPOs alone have raised more than $12 billion this year, with Klarna joining the ranks of high-profile listings like Circle Internet Group, Bullish, and Figma. The IPO also kicks off a busy week for New York listings, with other major offerings from crypto exchange Gemini Space Station, stablecoin issuer Figure Technologies, and Blackstone-backed Legence all expected to price soon, as Yahoo Finance reported.
Yet the road to Wall Street wasn’t exactly smooth for Klarna. The company had initially planned to go public earlier in 2025, but those ambitions were derailed by global market jitters following U.S. President Donald Trump’s April announcement of reciprocal tariffs on dozens of countries. The resulting volatility led Klarna to shelve its IPO plans temporarily, joining a broader trend of tech firms holding off amid uncertain conditions. When Klarna finally did move forward, it did so with a pricing estimate of $35–$37 per share, only to see demand push the final IPO price to $40, as noted by both Yahoo Finance and CNBC.
Klarna’s story is one of both resilience and reinvention. Founded as a BNPL pioneer, the company has built a user base of 111 million and now partners with a staggering 790,000 merchants, according to its securities filings. Klarna’s core offering allows shoppers to split everyday purchases into multiple installments—short-term credit that’s become increasingly popular with consumers, especially younger ones. The company earns revenue by charging merchants a small fee on each transaction, as well as collecting interest on longer-term financing and late fees from customers, as CNBC explained.
But Klarna is also keenly aware of the criticism surrounding BNPL services. Detractors argue that these platforms can encourage overspending and expose providers to credit risk if customers default. Klarna, for its part, has tried to broaden its appeal in recent months, attempting to rebrand itself as a digital retail bank. This pivot is seen as a test of Wall Street’s appetite for Klarna’s evolving business model, especially as the company faces stiff competition from rivals like Affirm and Afterpay.
Financially, Klarna’s recent performance has been a mixed bag. The company disclosed a net loss of $53 million in the second quarter of 2025, a significant increase from the $18 million loss reported during the same period last year. On the bright side, revenue climbed 20% year-over-year to $823 million, signaling robust growth even as the company struggles to turn a profit. As CNBC put it, Klarna’s IPO "will be a test of Wall Street’s excitement about the direction of its business."
It’s worth noting that Klarna’s current market cap, though impressive, is still well below the $45.6 billion valuation it achieved after a major investment from SoftBank in 2021. However, it’s more than double the $6.7 billion valuation Klarna received during a challenging 2022 funding round, which saw many fintech firms hit hard by shifting market sentiment. The company’s rebound underscores both the volatility and the potential of the fast-evolving fintech sector.
For Klarna’s leadership, the successful IPO is both a validation of its strategy and a new beginning. CEO Sebastian Siemiatkowski now faces the challenge of delivering sustained growth and, ultimately, profitability to justify the company’s lofty valuation. Klarna’s efforts to recast itself as a broader digital retail bank—beyond just BNPL—will be closely watched by investors and analysts alike. The company’s ability to manage credit risk, expand its merchant network, and tap new revenue streams will likely determine whether its Wall Street debut marks the start of a new era or just a fleeting moment in the spotlight.
Looking ahead, Klarna’s IPO may also serve as a bellwether for other fintechs considering a public listing. With the capital-raising environment showing renewed strength and public markets displaying a growing appetite for tech names, Klarna’s experience could encourage more firms to test the waters—though the company’s own ups and downs are a reminder that the path to public markets is rarely straightforward.
As Klarna’s shares settle into their new home on the NYSE, investors and industry watchers will be keeping a close eye on how the company navigates the next phase of its journey. The fintech landscape is shifting rapidly, and Klarna’s ability to adapt, innovate, and deliver results will be the true test of its staying power in the months and years to come.
