Klarna, the Swedish “buy now, pay later” fintech founded in 2005, officially went public on the New York Stock Exchange on September 10, 2025, under the ticker KLAR, raising about $1.37-$1.4 billion through its IPO. The shares were priced at $40 per share (above the initial range of $35-$37) and opened trading around $52, before closing near $45.82, marking roughly a 15-30% premium on the first day. Existing investors—most notably Sequoia Capital, which holds nearly 23% of the company—saw the biggest returns, as they sold much of their stake during the offering while Klarna itself sold only a small portion of the shares. The IPO gives Klarna a valuation in the neighborhood of $15-$20 billion, well below its 2021 peak of about $45.6 billion, but significant considering its decline in value in intervening years.
Sources: TechCrunch, Reuters
Key Takeaways
– Sequoia’s Long Bet Pays Off — Sequoia Capital, an early investor, emerged as a major winner, realizing substantial returns from its stake, highlighting the value of patient venture capital strategy.
– Valuation Reset, But Not a Collapse — While Klarna’s IPO valuation is far below its 2021 high, the outcome suggests a realistic recalibration rather than a failure, with investor willingness to buy at current numbers.
– Limited New Capital for Klarna; Mostly Liquidity for Existing Investors — The bulk of shares sold in the IPO were from existing investors, meaning Klarna itself raised comparatively little new capital, underlining that this IPO serves more as a liquidity event than a major funding-round for growth.
In-Depth
Klarna’s IPO marks a defining moment for both the company and the broader fintech/BNPL (buy now, pay later) landscape. After years of speculation, valuation swings, changing market conditions, and regulatory uncertainty, Klarna finally listed on the NYSE under the ticker “KLAR” on September 10, 2025. The offering raised about $1.37-$1.4 billion, though most of that came from existing shareholders selling shares—not from new capital pumped into the company.
Importantly, the IPO priced at $40 per share (above the original $35-$37 range), opened higher at ~$52, and closed the day around $45.82, registering a solid first-day gain in the 15-30% range. These numbers give Klarna a valuation between $15 and $20 billion, substantially lower than its 2021 peak at about $45.6 billion but a meaningful rebound from recent lows.
The major beneficiaries of this IPO are existing investors. Sequoia Capital, which has held a large stake since around 2010, sold shares and saw multi-billion-dollar gains, becoming by far the biggest winner.
Company co-founder and CEO Sebastian Siemiatkowski did not sell, retaining his stake worth over $1 billion at the IPO price.
From a pragmatic vantage, the IPO is a mixed bag but skews positive. The reset in valuation reflects tougher capital markets and more cautious investor sentiment—especially for fintechs with shaky profitability—but Klarna’s ability to price above range, attract demand, and reward early backers shows there is still strong belief in its business model. Going forward, the challenges will include sustaining growth, improving margins, managing credit risk (especially in U.S. operations), and navigating regulatory scrutiny. But for today, Klarna has made the leap from private to public on terms more realistic, though still competitive.