Klarna has raised $1.37 billion in its U.S. initial public offering, selling shares at $40 each, surpassing the initial price range. The IPO values the company at $15.11 billion, a significant decrease from its peak valuation of over $45 billion in 2021, reflecting the challenges faced by the fintech sector amid rising interest rates and inflation.

Klarna, the Swedish fintech company, has paused its plans for a U.S. initial public offering due to distress in global markets caused by President Trump’s tariffs. The postponement complicates the recovery of the U.S. IPO market, as Klarna's listing was anticipated to spur further IPO activity.

F-Prime Capital has identified a number of fintech companies, including Stripe and Klarna, that are poised for potential IPOs by 2025. The firm believes these companies are well-positioned to capitalize on market opportunities and could significantly impact the industry landscape in the coming years.

Klarna reported a net loss of $99 million in the first quarter of 2025, nearly doubling its loss from the previous year, primarily due to one-off costs. Despite a 13% increase in revenues to $701 million and a growing user base, the company has paused its U.S. IPO plans amidst market instability influenced by recent tariff policies. CEO Sebastian Siemiatkowski noted a significant reduction in headcount, attributed in part to AI investments.

Klarna and Affirm, two leading players in the buy-now-pay-later (BNPL) sector, are preparing for potential initial public offerings (IPOs) as they navigate a competitive landscape influenced by major financial institutions like Visa and Mastercard. The growth of BNPL services has raised regulatory scrutiny, prompting these companies to adapt their business models to ensure sustainability and compliance in the evolving market.

Klarna, the Swedish fintech known for its buy now, pay later model, is set to go public on the New York Stock Exchange under the symbol "KLAR," aiming to raise up to $1.27 billion through the sale of 34.3 million shares priced between $35 and $37. Despite a recent revenue increase of 20% year-on-year, the company reported a net loss of $53 million, reflecting a significant valuation drop from $45.6 billion in 2021 to around $14 billion currently.

Klarna is set to relaunch its IPO plans in the U.S. next month, targeting a valuation between $13 billion and $14 billion. This comes after a previous pause in its IPO strategy earlier this year due to market instability, with the company now looking to raise nearly $1 billion from the offering.

Klarna CEO Sebastian Siemiatkowski announced a 40% reduction in the company's workforce, attributed to investments in artificial intelligence and natural attrition. The fintech firm has embraced AI tools, significantly enhancing productivity, but also plans to hire more human customer service agents to maintain service quality. Despite a hiring freeze, Klarna continues to advertise open positions and is preparing for its long-awaited IPO.

Klarna is set to go public with an expected IPO price of $35 to $37 per share, but it faces challenges as its growth has lagged behind competitors like Affirm. Investment bankers are pricing Klarna based on smaller peers rather than its closest rival, indicating a shift in perception of its market position. The company has opportunities to regain momentum through its expansion into cards and everyday banking, but its future growth is uncertain.

Klarna is intensifying its transition to a digital banking model as it prepares for a second attempt at an initial public offering (IPO). The company aims to expand its services and solidify its position in the competitive fintech landscape.