Swedish fintech company Klarna, known as one of the pioneers of the Buy Now, Pay Later (BNPL) model, is preparing for its debut on the New York Stock Exchange after years of dramatic ups and downs. The expected IPO on the New York Stock Exchange under the ticker KLAR is thus an event that no investor looking for promising companies for their portfolio should miss.
The road to IPO
Klarna was founded in 2005 in Stockholm with a simple goal – to make online shopping more convenient thanks to deferred payment. Gradually, it managed to build a global brand that reached millions of customers and expanded its portfolio to include debit cards and deposit accounts.
But the story wasn't just about growth. In June 2021, the company's valuation soared to a staggering $45.6 billion – an investment round led by SoftBank and considered by many to be a European Fintech star at the time. A year later, however, a hard fall came. The macroeconomic slowdown and uncertainty following the military conflict between Ukraine and Russia pushed the firm's value by 85% to just $6.7 billion. The following months were marked by restructuring and austerity measures. The long-awaited IPO even had to be postponed in the first half of 2025, after the announcement of reciprocal tariffs by the administration of President Donald Trump.
Offer parameters
Currently, Klarna will finally enter Wall Street. The IPO includes a total of 34.3 million shares with a price range of $35 to $37 per share, valuing the company at around $14 billion at the upper limit. Of these, 5.56 million shares represent new issues, while the majority, approximately 28.8 million shares, will be sold by existing shareholders. Thus, the company can raise up to $1.27 billion. What gives this IPO due seriousness and investor confidence is that investment giants Goldman Sachs, JP Morgan and Morgan Stanley are participating in the transaction as joint book-runners. [1]
Performance and results
Despite the return to the growth trajectory, Klarna still remains loss-making. In the second quarter of 2025, the company achieved revenue of $823 million, an increase of 20% year-over-year. At the same time, however, it reported a net loss of USD 53 million. For investors, the IPO is not only about numbers, but also about the long-term question of trust whether Klarna can permanently get on the path of profitability. However, the resulting share price is formed much more comprehensively than just whether the company is loss-making or profitable, which means that in the near future, Klarna's success on the stock exchange may also be driven by other fundamental parameters such as a consistent increase in sales and a clear plan for expansion.
Relevance to the market
Klarna's story is emblematic of the entire Fintech sector. Rapid growth driven by low interest rates, followed by a period of decline at a time of geopolitical and economic uncertainty, and now the search for new stability. If its debut on Wall Street is successful, it may send a signal that investors will start to trust European Fintechs more and more, and that the BNPL model has a bright future ahead of it. [2]
[1,2] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which is subject to change. Such statements are not a guarantee of future performance. They involve risks and other uncertainties that are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements
