Klarna Set to Revive IPO

August 27, 2025 • FinTech News

Klarna Prepares for Highly Anticipated U.S. IPO with $13–14 Billion Valuation Target

Klarna, the Swedish buy-now-pay-later leader, is moving forward with its initial public offering in the United States after delaying earlier plans. According to Reuters, the company will restart its IPO process in September 2025. Klarna expects to price its shares between $34 and $36, which would value the company between $13 billion and $14 billion.

Previous Delay and Market Conditions

Klarna originally paused its IPO ambitions in April 2025 due to significant market turbulence. Trade tensions and new tariffs introduced under President Donald Trump contributed to this volatility. The company chose a cautious approach, delaying its public market debut until conditions improved.

Recent Strategic Moves Strengthen Financial Position

Klarna recently strengthened its financial standing by agreeing to sell up to $26 billion in U.S. consumer loans to Nelnet, a major student loan company. This strategic sale provides Klarna with more predictable off-balance-sheet funding. It also enhances financial stability as the company expands in the highly competitive U.S. market.

Financial Performance and User Growth

Despite economic challenges, Klarna continues to demonstrate impressive growth. The company reported 111 million active users in Q2 2025—a 31% year-over-year increase. Revenue also grew by 20% during the same period, reaching $823 million. However, Klarna is not yet profitable; it reported a pre-tax loss of $53 million in Q2 2025, largely due to increased credit loss provisions.

Industry Context and BNPL Adoption

Klarna’s IPO is particularly significant given its role as a bellwether for the fintech sector. The company’s public offering could inspire other fintech firms considering U.S. listings. The BNPL model has gained substantial traction, especially among consumers who manage tight budgets between paychecks. This growing adoption underscores the sector’s potential despite recent regulatory and economic headwinds.

Valuation Evolution and Investor Sentiment

Klarna’s targeted valuation of $13–14 billion represents a notable decline from its peak private valuation of $46 billion in 2021. This adjustment reflects both market conditions and the company’s current financial performance. Nevertheless, investor interest remains strong, particularly following successful recent IPOs by companies like Figma and Circle.

Implications for the Fintech Sector

A successful Klarna IPO could rejuvenate the public markets for fintech companies. It would signal that investor confidence is returning after a period of subdued listings. Klarna’s ability to adapt its funding structure and expand its user base despite economic pressures demonstrates resilience in the BNPL sector.

Looking Ahead

Klarna’s journey to the public markets highlights both the challenges and opportunities in modern consumer finance. The company’s emphasis of flexible payment options has resonated with millions of users worldwide. As Klarna moves toward its IPO, all eyes will be on how public investors value this pioneering BNPL firm and what it means for the future of digital payments.