tl;dr
Klarna's IPO on the New York Stock Exchange was successful, with shares rising 15% to close at $45.82, raising $1.37 billion. The company is now valued at around $17.3 billion. The IPO marks a shift for Klarna as it expands into traditional banking, offering a debit card and personal deposit accou...
Klarna’s IPO debut on the New York Stock Exchange was a resounding success, with shares surging 15% to close at $45.82—well above the $40 price tag that launched the Swedish fintech’s public market journey. The company raised $1.37 billion in the process, a haul that underscores Wall Street’s growing appetite for tech IPOs this year. From stablecoin issuer Circle to design platform Figma, the trend shows no signs of slowing, with crypto exchange Gemini set to join the fray soon.
For Klarna, the IPO isn’t just a financial milestone—it’s a celebration of a decade-long journey. Co-founder and CEO Sebastian Siemiatkowski likened the event to a wedding, a “big party” after years of preparation. “It’s a milestone, but the real work starts after,” he told CNBC, hinting at the challenges ahead. The company’s stock opened at $52, a buoyant start that faded slightly by the close, leaving Klarna valued at around $17.3 billion.
The IPO also marks a pivot for Klarna, which has been expanding beyond its signature “buy now, pay later” model into traditional banking. The company recently rolled out a debit card and personal deposit accounts in the U.S., a move that’s already attracted 700,000 cardholders and 5 million people on a waiting list. Siemiatkowski emphasized that Klarna’s card offering differs from rivals like Affirm, which targets users with higher-ticket financing needs. “We’re appealing to a slightly different audience,” he said, positioning the card as a tool for everyday spending rather than large purchases.
But Klarna isn’t the only player in this space. It faces stiff competition from Affirm and Afterpay, the latter of which was snapped up by Square (now Block) for $29 billion in 2021. Meanwhile, regulatory scrutiny looms, particularly in the U.K., where new rules aim to bring BNPL services under formal oversight to curb risks of over-indebtedness.
Behind the scenes, the IPO has delivered massive returns for some investors and painful losses for others. Sequoia Capital, which backed Klarna in 2010, sold 2 million shares in the IPO, netting $2.65 billion in returns. The firm’s partner, Andrew Reed, called the journey “staggering,” noting Klarna’s growth from a European startup to a global force with 100 million users and $100 billion in gross merchandise value.
Not all investors fared as well. SoftBank, which led a 2021 funding round at a $46 billion valuation, now watches its stake plummet as Klarna’s IPO price falls far short of that lofty target.
As Klarna navigates its new public chapter, the question remains: Can it sustain its momentum? With a growing user base, a push into banking, and a market hungry for innovation, the answer may lie in how well it balances growth with the regulatory and competitive pressures ahead. For now, the IPO has proven one thing—Klarna’s story is far from over.