Fintech Firm Klarna raises $1.37B in US IPO, Sets Stage for Market Debut

Swedish payments firm Klarna raised $1.37 billion in its U.S. initial public offering (IPO), amid burgeoning US market debuts.

The “Buy Now, Pay Later” (BNPL) lender reported 34.3 million shares sale valued at $40 each, above its marketed $35-$37 range. Per a Reuters report, the sale equates Klarna to a $15 billion valuation.

The firm’s valuation slumped to $6.7 billion in 2022, at a time when interest rates and inflation were soaring.

Klarna made its crypto foray in February, with CEO Sebastian Siemiatkowski seeking suggestions from the crypto community on how it should integrate crypto into its ecosystem.

The company, which provides a range of payment solutions for online shopping apart from BNPL, filed for an IPO with the US SEC in November 2024.

The IPO debut on Tuesday positions Klarna as a major player in the evolving digital payments sector. The company will start trading on the New York Stock Exchange under the symbol “KLAR” from Wednesday.

With the end of the third quarter nearing, the FinTech IPO Index has shown a strong year-to-date (YTD) performance. The index was up 118% YTD as of Sept. 5, fueled by BNPL player Affirm and Opendoor, according to Pymnts.

Besides, fintech firm and stablecoin issuer Figure Technology revealed plans to go public this month. The company is seeking to raise up to $526 million through an IPO and plans to sell 21.5 million shares priced between $18 and $20 each.

Blockchain lender Figure Tech targets $4.3B valuation in its September IPO, aiming to raise $526 million. #IPO #Blockchain #figurehttps://t.co/alWQUw3R4y

As far Klarna, which has been planning a New York listing for years, witnessed $52 million in losses in the second quarter, up from $7 million a year ago.

However, the company’s revenue increased to $823 million from $682 million. Klarna initially aimed for an April IPO, per Financial Times.

The Sequoia Capital-backed firm’s IPO on Tuesday follows a wave of offerings from Circle, Figma and Bullish, which have revived the broader IPO market. Klarna’s pricing would further foster confidence among peers on the Fintech IPO Index.

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