Klarna Revives U.S. IPO, Aiming to Raise Up to $1.27 Billion at a $14 Billion Valuation

Klarna Revives U.S. IPO, Aiming to Raise Up to $1.27 Billion at a $14 Billion Valuation

Swedish buy-now-pay-later heavyweight Klarna Group on Tuesday relaunched its long-awaited U.S. stock market debut, filing to sell 34.3 million shares at a price range of $35–$37 and aiming to raise up to $1.27 billion in an offering that would value the fintech at roughly $14 billion. The company said it plans to list on the New York Stock Exchange under the ticker KLAR as investors again warm to high-growth fintech listings. 

The filing shows Klarna is offering a mix of new shares and secondary stock from existing shareholders — a structure that will let early backers unlock liquidity while the company replenishes capital for lending and product investment. Goldman Sachs, JPMorgan and Morgan Stanley are listed as joint bookrunners for the deal. The company gave a target pricing window in early September, with some reports saying the IPO could price as soon as Sept. 9. 

The numbers investors will focus on

Klarna set the offering range at $35 to $37 a share for the 34.3 million shares covered in the filing, and granted underwriters a customary option to buy additional shares. At the top of the range, the deal would raise about $1.27 billion before underwriting discounts and expenses. The prospectus and company statements indicate existing shareholders will sell a substantial portion of the blocks on offer. 

The filing reiterates the company’s position as one of the world’s largest BNPL providers; Klarna’s most recent private valuations swung wildly earlier in the decade — from peaks above $40 billion in 2021 to a downround at roughly $6.7 billion in 2022 — and the $14 billion target reflects both recovery in investor sentiment and continued caution about the company’s path to profitability. 

Why Klarna is testing the market now

Klarna’s management said in the filing and public statements that market conditions have improved since the firm shelved earlier IPO plans, and that investor appetite for well-positioned fintechs has returned following a lull in 2024–25. The company also flagged a strategic priority: scale its lending and payments business while expanding products such as savings, banking services and merchant tools that can cross-sell to its base of over 150 million global users. 

That pitch comes alongside financial reality: Klarna has reported ongoing losses and rising credit costs tied to consumer-lending exposure. Recent quarterly figures showed widening net losses and elevated default rates in some markets — metrics investors will scrutinize carefully as they judge the firm’s ability to convert growth into sustainable profits. 

Market context and investor reaction

The revival of Klarna’s IPO underscores a broader return of demand for large fintech offerings in 2025, after a lengthy drought of blockbuster listings. Investors’ renewed interest in AI and payments platforms, combined with steadier market liquidity, has encouraged several tech firms to test public markets this autumn. Still, analysts flagged that a sizeable block of shares being sold by insiders could weigh on the aftermarket if demand is tepid. 

Some coverage noted small discrepancies in early reports — a few outlets briefly cited a larger deal size — but Reuters, Bloomberg, TechCrunch and Klarna’s own press materials converged on the $1.27 billion target and $35–$37 range used in this article. Investors should watch the final pricing and the level of secondary selling to gauge true demand. 

Competitive and regulatory risks

Klarna faces fierce competition from the likes of Affirm, Afterpay (owned by Block), PayPal and traditional card networks moving into flexible-pay products. BNPL companies also remain under regulatory scrutiny in multiple jurisdictions over underwriting standards, consumer disclosures and the treatment of late fees — any of which could affect loan-loss provisions and unit economics. The company’s filing acknowledges these risks and notes ongoing efforts to diversify funding sources, including growing customer deposits in some markets. 

China- and U.S.-led export controls haven’t directly affected Klarna, but broader macro risks — higher interest rates that squeeze consumer spending, or a deterioration in credit — could worsen loss trends and hamper margins, complicating the path to profitability. 

Analysis — why this IPO matters (and what could go wrong)

Klarna’s return to the IPO market is a litmus test for investors’ appetite for fintech stories that sit between growth and credit risk. If the company can convincingly show that it can scale revenue while bringing down credit costs, the offering could mark a generational opportunity for public markets to re-embrace payments platforms. That upside is concentrated: a successful IPO would give Klarna fresh capital to compete globally and shore up funding for its lending book. 

But the downside is real. BNPL is fundamentally a lending product wrapped in payments rails; when macro credit stress rises, defaults can spike quickly. Investors who bid aggressively must be comfortable with three facts: (1) Klarna is still loss-making in core markets, (2) a large portion of the shares on offer are secondary sales by existing backers, which can amplify supply pressure, and (3) regulatory tightening remains a live risk. Those factors could make KLAR a volatile debut even if market conditions remain broadly supportive. 

What to watch next

• Final pricing and allocation: whether the company prices at the top of its $35–$37 range and how much of the deal is primary versus secondary.

• Underwriter demand and greenshoe use: whether underwriters exercise overallotment options, which would signal stronger aftermarket support.

• Near-term trading performance: post-IPO volatility is likely if secondary selling is heavy or if Q3 credit trends disappoint.

• Regulatory headlines: fresh guidance or enforcement actions in key markets (U.S., U.K., EU) that could alter Klarna’s capital or compliance outlook.