Klarna Makes $19.65 Billion IPO Debut

Klarna, the Swedish fintech giant known for its buy-now, pay-later (BNPL) services, made a high-profile debut on the New York Stock Exchange on September 10, 2025. The company’s initial public offering (IPO) was priced at $40 per share, but strong investor demand sent shares soaring 31% to open at $52, briefly valuing Klarna at $19.65 billion. This marked the largest IPO of 2025 and signaled renewed investor appetite for fintech and technology sector listings after a period of market uncertainty.

The IPO raised approximately $1.37 billion through the sale of 34.3 million shares, with only a fraction representing new capital for the company and the majority sold by existing investors. Klarna’s offering was 25 times oversubscribed, underscoring robust institutional and retail interest. By the end of the first trading day, shares settled at $45.82, still up 14.6% from the IPO price, and the company’s closing valuation stood at around $17 billion.

Founded in 2005, Klarna has grown to serve over 111 million users and 790,000 merchant partners worldwide. The company’s revenue reached $2.8 billion in 2024, a 24% increase year-on-year, but it continues to operate at a loss, reporting a $52 million net loss in the second quarter of 2025. Klarna’s hybrid model, combining BNPL with digital banking services, is seen as both a growth opportunity and a source of regulatory risk, particularly as it expands in the U.S. and U.K. markets.

The IPO’s structure included a dual-class share system, granting founders and early backers enhanced voting rights and signaling a preference for long-term strategic control. This governance model, similar to those used by major tech firms like Alphabet and Meta, has drawn both praise for its focus on stability and criticism for potential transparency gaps.

Klarna’s public debut is widely viewed as a barometer for the broader fintech sector, which has seen valuations recalibrate in the wake of the pandemic and rising interest rates. The company’s ability to achieve profitability by 2026, manage credit costs, and navigate evolving regulations will be closely watched by investors and industry observers. The IPO’s success could pave the way for other late-stage fintechs considering public listings, but it also highlights the sector’s ongoing challenges in balancing growth with sustainable business models.

For employees and early investors, the IPO unlocked significant wealth, with founder stakes estimated between $1 billion and $1.3 billion. However, the fluctuating share price and reduced valuation compared to Klarna’s 2021 peak of $45.6 billion reflect the competitive pressures and shifting investor priorities in the BNPL and broader fintech landscape.