Klarna revives IPO plans, seeks $1.27 billion raise
Swedish buy now, pay later (BNPL) pioneer Klarna is moving forward with a long-anticipated public debut, announcing plans to raise up to $1.27 billion in a New York Stock Exchange listing that could value the company at up to $14 billion.
Details of the Offering
According to Klarna’s updated filing on Tuesday, the company and some of its shareholders will sell approximately 34.3 million shares priced between $35 and $37 each. Of those, Klarna itself will issue about 5.6 million shares, while existing shareholders will offload nearly 29 million shares. The company’s shares will trade under the ticker “KLAR.”
From $45 Billion Peak to IPO Reality
Klarna has long been considered a candidate for one of Europe’s biggest fintech IPOs. At its peak in 2021, amid a pandemic-fueled surge in BNPL adoption, the company reached a staggering $45 billion valuation. But as interest rates rose and venture capital markets cooled, Klarna’s value collapsed to $6.5 billion in 2022 — an 85% decline.
The revived IPO comes as Klarna aims to rebuild momentum and reestablish its position as one of the leaders in global fintech.
Financial Performance
Recent results highlight both progress and challenges:
- Revenue rose 54% year-over-year in Q2 2025 to $823 million.
- Gross merchandise value (GMV) increased 14% to $6.9 billion.
- Net loss narrowed to $53 million, a 42% improvement from the $92 million loss a year earlier.
The numbers suggest Klarna is moving closer to profitability, though its BNPL model still draws scrutiny from regulators and consumer advocates concerned about debt risk.
Banking Syndicate
The offering is being led by Goldman Sachs, JP Morgan, and Morgan Stanley, with BofA Securities, Citigroup, Deutsche Bank, Société Générale, UBS, and others also underwriting the deal.
Why It Matters
Klarna’s IPO will be closely watched as a bellwether for both European fintech and the BNPL sector. A successful listing at $14 billion would mark a dramatic rebound from its post-bubble lows and could encourage other fintech startups to revisit public market ambitions.
