In a significant market debut on Wednesday, Klarna’s shares surged approximately 17% in afternoon trading, stabilizing around $46.50 just 90 minutes after its initial public offering (IPO). This rise brought the company’s market capitalization to approximately $17.5 billion, an impressive figure considering it opened for trading at $52—30% higher than its initial IPO price of $40 per share. At its launch, Klarna’s market cap reached around $19 billion.
The IPO was a substantial financial success for Klarna, raising $1.37 billion, notably surpassing its earlier pricing estimates of $35 to $37 per share. This strong demand for Klarna’s stock reflects a light at the end of the tunnel for the company as it navigates the fluctuating landscape of the fintech market.
Despite this positive debut, Klarna’s current valuation remains significantly lower than its peak of $45.6 billion, a figure reached following a major investment from SoftBank in 2021. However, it is more than double the company’s worth of $6.7 billion following a private funding round held in 2022, a period marked by challenges within the payments sector.
Klarna’s IPO marks its second attempt to go public this year, having previously paused its offering in April due to market volatility triggered by geopolitical tensions and a downturn in IPO activity. The timing of its new offering coincides with a period of renewed interest in capital raising efforts on the New York Stock Exchange, which has seen a resurgence in the number of listings.
In addition to Klarna, several other companies are expected to price their offerings this week, including the cryptocurrency exchange Gemini Space Station, spearheaded by the Winklevoss twins, as well as Figure Technologies and engineering firm Legence, backed by Blackstone.
Klarna’s successful IPO is part of a trend this year, which has seen a series of successful public market entries, including notable names like design software giant Figma and USD Coin issuer Circle Internet Group. According to IPO research firm Renaissance Capital, 144 companies valued at over $50 million have gone public in 2025, marking a 53% increase compared to the same period in 2024. The tech sector alone has managed to raise over $12 billion through its IPOs this year.
Klarna, led by CEO Sebastian Siemiatkowski, is well-known for its buy now, pay later (BNPL) service, which provides short-term credit to consumers allowing them to pay for purchases in installments. The fintech company boasts a substantial user base of 111 million and partnerships with 790,000 merchants.
Despite its popularity, BNPL schemes like Klarna’s have faced criticism. Skeptics argue that such services promote overspending, raising concerns about the potential credit risk these companies might face if customers default on payments. This ongoing debate highlights the complexities surrounding the burgeoning BNPL market as it continues to evolve.
