Sebastian Siemiatkowski, chief govt officer and co-founder of Klarna Holding AB, middle, and Michael Moritz, chairman of Klarna Financial institution AB, middle proper, throughout the firm’s preliminary public providing (IPO) on the New York Inventory Alternate (NYSE) in New York, US, on Wednesday, Sept. 10, 2025.
Michael Nagle | Bloomberg | Getty Photos
Klarna shares popped 30% of their New York Inventory Alternate debut Wednesday, opening at $52, after the Swedish on-line lender priced its IPO above its anticipated vary.
The corporate, recognized for its well-liked purchase now, pay later merchandise, priced shares at $40 on Tuesday, elevating $1.37 billion for the corporate and current shareholders. The providing valued Klarna at about $15 billion.
The IPO marks the most recent in a rising checklist of high-profile tech IPOs this yr, suggesting elevated demand from Wall Road for brand spanking new choices. Firms like stablecoin issuer Circle and design software program platform Figma soared of their respective debuts. In the meantime, crypto change Gemini is predicted to go public later this week.
“To me, it actually simply is a milestone,” Klarna’s co-founder and CEO Sebastian Siemiatkowski instructed CNBC in an interview on Wednesday. “It is just a little bit like a marriage. You put together a lot and you intend for it and it is a huge social gathering. However in the long run — marriage goes on.”
Klarna’s entry into the general public markets will take a look at Wall Road’s pleasure concerning the path of its enterprise. The corporate has in current months talked up its transfer into banking, rolling out a debit card and private deposit accounts within the U.S.
Klarna has signed 700,000 card prospects within the U.S. to this point and has 5 million folks on a ready checklist searching for entry to the product, Siemiatkowski instructed CNBC. He added that Klarna Card represents a distinct proposition to rival fintech Affirm’s card providing, which has attracted 2 million customers since its launch in 2021.
“We’re attracting a barely completely different viewers perhaps than the Affirm card,” Siemiatkowski stated. “I get the impression that’s extra a card the place folks use it merely to have the ability to have financing with curiosity on barely greater tickets.”
Along with Affirm, Klarna additionally competes with Afterpay, which was acquired for $29 billion in 2021 by Sq., now a unit of Block.
Klarna faces some potential regulatory headwinds. Within the U.Okay., the federal government has proposed new guidelines to carry BNPL loans underneath formal oversight to deal with affordability issues relating to the market.
A banner for Swedish fintech Klarna, hangs on the entrance of the New York Inventory Alternate (NYSE) to rejoice the corporate’s IPO in New York Metropolis, U.S., September 10, 2025.
Brendan McDermid | Reuters
The IPO is poised to generate billions of {dollars} in returns for a few of Klarna’s long-time traders. Current shareholders are providing the majority of Klarna shares— 28.8 million — on the general public market. At its IPO value of $40, that interprets to over $1.2 billion. In the meantime, Klarna raised $222 million from the IPO.
Sequoia, which first backed in Klarna in 2010, has invested $500 million in whole. The enterprise agency bought 2 million of its 79 million shares within the IPO, which means it is generated an general return of about $2.65 billion, primarily based on the supply value.
Andrew Reed, a companion at Sequoia, instructed CNBC that he was nonetheless in school when Sequoia made its first funding in an “various funds firm in Stockholm.” The early work, he stated, was round increasing in Europe.
“Being right here in New York 15 years later with over 100 million customers and over $100 billion of GMV [gross merchandise value] and near 1,000,000 retailers, it’s staggering what one yr after one other of execution and development and Sebastian’s long-term imaginative and prescient can do,” Reed stated.
One other Klarna investor hasn’t been so fortunate. Japan’s SoftBank led a 2021 funding spherical in Klarna at a $46 billion valuation and has since seen the worth of its stake plunge considerably.
WATCH: CNBC’s interview with Klarna CEO Sebastian Siematkowski
