Swedish payments company Klarna has officially made its long-awaited Wall Street debut, raising $1.37 billion in its United States initial public offering (IPO). The “Buy Now, Pay Later” (BNPL) lender priced 34.3 million shares at $40 each, above its marketed range of $35–$37, valuing the company at around $15 billion.

The listing marks Klarna’s transformation into one of the most closely watched fintech players in the US market and underscores the growing appetite for digital payments firms amid improving IPO conditions.

Strong Recovery from Previous Valuation Slump

Klarna’s IPO comes after a turbulent few years for the Stockholm-based fintech. In 2022, the company’s valuation fell sharply to $6.7 billion, following a combination of rising interest rates, inflationary pressures and weaker investor sentiment towards growth-focused technology firms.

The IPO pricing represents a strong comeback for the Sequoia Capital-backed firm, restoring its status among the highest-valued fintechs globally. Klarna had originally aimed for a New York listing as early as April 2024, but the plan was delayed amid volatile market conditions.

Financial Performance: Losses Widen but Revenues Grow

Despite a successful debut, Klarna’s financial performance highlights both opportunities and risks. The firm reported second-quarter losses of $52 million, a sharp increase from $7 million a year earlier. Rising expenses, particularly related to expansion efforts and compliance costs, contributed to the widened deficit.

However, revenues painted a brighter picture. Klarna’s top line climbed to $823 million in the second quarter, up from $682 million in the same period last year, showing strong consumer adoption of its BNPL and digital payment services.

Klarna’s model, which allows consumers to split payments for online purchases into instalments, has gained significant traction globally, particularly among younger shoppers seeking flexible credit alternatives.

Market Context: Fintech IPOs See Renewed Demand

The timing of Klarna’s IPO aligns with a broader rebound in fintech listings. The FinTech IPO Index, which tracks the performance of public offerings in the sector, is up 118% year-to-date as of 5 September, bolstered by companies such as Affirm and Opendoor.

Upcoming listings are expected to sustain the momentum. Stablecoin issuer Figure Technology has also filed for an IPO, seeking to raise up to $526 million through the sale of 21.5 million shares priced between $18 and $20 each.

Klarna’s successful pricing and valuation may further boost investor confidence, potentially encouraging more fintech firms to pursue public offerings in the coming months.

Crypto Angle and Future Outlook

While Klarna is primarily a BNPL and payments provider, it has signalled interest in the crypto sector. In February, CEO Sebastian Siemiatkowski openly sought feedback from the crypto community on how the company might integrate digital assets into its ecosystem. Though no concrete plans have been announced, Klarna’s scale and global reach could make its eventual entry into crypto highly significant.

For now, the firm’s focus will be on leveraging its NYSE debut under the ticker “KLAR” to consolidate its position in the payments market. With a fresh injection of capital and renewed investor backing, Klarna aims to balance growth ambitions with financial discipline in an increasingly competitive BNPL and fintech landscape.

A Milestone for Fintech Listings

Klarna’s IPO is part of a broader wave of high-profile market debuts, including those of Circle, Figma and Bullish, which have revived enthusiasm for public listings after a prolonged slowdown. For Klarna, the $15 billion valuation not only marks a strong recovery but also sets the stage for its future expansion in the US and beyond.

As Klarna begins trading on the New York Stock Exchange, its performance will be closely monitored as a bellwether for fintech IPOs and the appetite for innovative payment models in global capital markets.