Klarna’s Landmark IPO: Buy-Now-Pay-Later Giant Makes Successful NYSE Debut

11 September 2025 Finance

A Historic Market Debut

Swedish buy-now-pay-later company Klarna has made its highly anticipated public debut on the New York Stock Exchange (NYSE), selling 34.3 million shares to investors at $40 per share, above the forecasted range of $35 to $37, valuing the company at more than $15 billion.

The amount raised in Klarna’s initial public offering, approximately $1.37 billion, marks the largest IPO this year, signifying a significant milestone for both the company and the fintech sector.

Company Performance and Market Position

While Klarna has become synonymous with the buy now, pay later (BNPL) model, which allows people to split purchases into interest-free installments, the company has recently been positioning itself as more than just a BNPL firm, aiming to be recognized as a comprehensive digital retail bank.

The company has shown strong growth, with revenue rising 54% to $823 million in the second quarter compared to the previous year, thanks to a 14% increase in its gross merchandise value to $6.9 billion. While the company’s bottom line showed a net loss of $53 million, this represents a 42% improvement from the $92 million loss a year earlier.

Market Response and Future Outlook

The market response has been positive, with Klarna shares opening 30% above their offer price in their NYSE debut, giving the Swedish fintech a valuation of $19.65 billion. The stock opened at $52 before adjusting throughout the day, with the company valued at about $17.3 billion at the close.

According to Matthew Kennedy, senior strategist at Renaissance Capital, the booming IPO market shows no signs of slowing down. This is partly due to a three-year bottleneck of companies waiting to go public, particularly in the VC-backed tech sector, which has been ‘swelling with unicorns.’ Investors are now willing to pay valuations that VC-backed tech companies find acceptable.

Industry Impact

The successful IPO contributes to a broader trend in the market, with 144 IPOs priced in 2025 through September 10, representing a 53% increase from the previous year. Total proceeds from these filings have reached $24 billion, up 3.1% from the year-ago period.