Klarna goes public, aiming to raise $1.25B after rebounding from a $6.7B slump with renewed growth. Meanwhile, BNPL rival Revolut is watching closely.
Klarna, the Swedish buy-now-pay-later giant, went public Wednesday, Sept. 10, after 20 years as a private company.
The stock price closing at $45.82, up 15%, after the fintech firm priced its IPO above expectations.
Once Europe’s most valuable VC-backed firm, Klarna reached a $46 billion valuation in 2021, only to face a steep decline to $6.7 billion the following year due to macroeconomic factors and increased regulatory scrutiny.
Klarna planned to raise up to $1.25 billion on the New York Stock Exchange. Trading under the ticker symbol KLAR, the company wound up raising $1.37 billion.
In 2024, Klarna reported $2.8 billion in revenue, a 24% year-over-year growth, and its first profit since 2019. Despite a $152 million loss in the first half of 2025, the company’s growth in revenue and user numbers, particularly in the U.S., remains strong.
Klarna spokesperson John Craske declined to comment on the IPO process.
Klarna’s IPO Journey Not Without Hurdles
“Klarna is interesting, as they planned to IPO until tariff volatility made them pull it. That’s a rough start,” Colin Symons, CIO of Lloyd Financial, says. While expectations for the offering were strong, with the IPO oversubscribed, Symons points out that the bigger question is whether long-term investors will be willing to buy in post-IPO. He adds, “Some of the concern is whether inflation data could cause chaos, affecting liquidity.”
Symons also shares his cautious view on Klarna’s growth, noting that a 15-25% growth rate is “not lights-out great” and that the company’s results remain volatile. “I wouldn’t be in a hurry to buy it, post-IPO,” he admits. “We’ve seen some recent IPOs suffer after an initial pop, and I’d worry about that here.”
Bullish, the crypto platform operator, saw its stock price plummet over 20% from when it went public on August 13.
Symons also compares Klarna’s stock to competitors like San Francisco-based Affirm, calling it “lower quality and more volatile,” which he believes justifies its discounted valuation compared to peers.
Despite these concerns, Klarna’s focus on profitability, solid customer growth, and strategic partnerships—like its deal with Walmart—could make the $14 billion valuation achievable or even surpassed, signaling a potential shift for other European startups vying to public listings.
As for the broader state of IPOs, Symons says IPOs remain interesting “as long as liquidity remains plentiful.”
“But we’ve already seen over $40 billion in deals,” he warns. “The risk is that the market loses its appetite as we run out of buyers.”
Who’s Next?
Klarna isn’t the only company going public this week. Figure Technology Solutions is making its trading debut on September 11 while Legence Corp., Black Rock Coffee, Gemini Space Station (GEMI) and Via Transportation have all set aside September 12. See chart below.
But as for European fintechs, Symons considers London-based Revolut to be the standout company to watch.
“Revolut seems like a better company to me, so that could be interesting,” he added.
Revolut recently unveiled a secondary share sale that has boosted the UK fintech’s valuation to $75 billion. While the share sale provides liquidity for employees, the timing has led to speculation that Revolut’s long-awaited IPO may be delayed.
Some believe it signals growing impatience among staff or a potential move to list in New York instead of the UK, given regulatory frustrations with the UK’s slow banking license process (Revolut CEO Nik Storonsky stated in December that a UK listing is “not rational”).
“Our long-term objective is to expand internationally and become one of the top three financial apps in all markets we enter,” David Tirado, Revolut’s VP of Profitability and Global Business, recently told Global Finance.
Whether Revolut is encouraged by Klarna’s IPO efforts to speed up the process remains to be seen. Other fintechs have been hesitant. Dublin-based payment processor Stripe, like Klarna, was among the most talked-about pending IPOs—in 2023. Today, Stripe remains private, with no official date set for its IPO.
Although a public debut is eagerly awaited, the company’s leadership has not committed to a specific timeline and appears to be in no hurry. However, the fact that several other outfits are prepping to go public after Klarna this week, Accelerate Fintech’s Julian Klymochko says “now would be the time to do it.”
“There’s an old Wall Street adage that goes, ‘When the ducks are quacking, feed them,'” Klymochko adds. “The ducks are most certainly quacking right now.”
| Company | Sector/Industry | IPO Proceeds (Expected) | Pricing Date | Trading Debut |
|---|---|---|---|---|
| Figure Technology Solution | Stablecoin / Blockchain | $500M | Sept. 10, 2025 | Sept. 11, 2025 |
| Legence Corp. | Heating & Ventilation | $702M | Sept. 12, 2025 | Sept. 12, 2025 |
| Via Transportation Inc. | Mobility Tech | $450M | Sept. 12, 2025 | Sept. 12, 2025 |
| Gemini Space Station Inc. | Cryptocurrency Exchange | $300M | Sept. 12, 2025 | Sept. 12, 2025 |
| Black Rock Coffee Bar Inc. | Food & Beverage | $250M | Sept. 12, 2025 | Sept. 12, 2025 |
