• Klarna raised $1.37 billion in its US IPO, valuing the company at $15.1 billion.
• The stock debuted at $40 per share, later rising to $52, a 30% increase.
• Klarna's IPO is the largest of 2025, indicating a rebound in fintech interest.

Swedish buy-now, pay-later lender Klarna has successfully set its initial public offering (IPO) at $1.37 billion, making its debut on the New York Stock Exchange under the ticker symbol “KLAR.” Priced at $40 per share, which exceeded the initial target range of $35 to $37, this valuation positions Klarna at approximately $15.1 billion, a significant drop from its peak valuation of over $45 billion in 2021. The IPO serves as a critical barometer for the revived interest in fintech listings amid improving market conditions, according to Reuters and Al Jazeera.

This IPO marks Klarna's largest financial milestone amidst a highly competitive environment. The company is attracting significant investor attention, indicated by a 15 times oversubscribed order book. Analysts highlight that while Klarna's market debut affirms growing investor interest, its future performance will be dictated by its capacity to balance growth and profitability, particularly in a volatile economic climate, according to Reuters and Business Insider.

Founded in 2005, Klarna has broadened its offerings since entering the U.S. market in 2015. Its services allow consumers to purchase goods and pay in installments, a payment method that gained traction during the pandemic. However, the company faced serious valuation declines due to rising interest rates and macroeconomic pressures, with its valuation plummeting to around $6.7 billion last year. Despite these challenges, Klarna has sustained a large user base and consistent revenue stream, primarily from transaction fees, according to Reuters and Al Jazeera.

In terms of operational changes, Klarna is refocusing its workforce amid ongoing market adjustments, requiring employees to return to offices a few days a week. The company's strategic pivot, coupled with its strong brand recognition, is viewed as critical for navigating the competitive landscape as it addresses concerns from regulators and the financial community regarding consumer debt exacerbated by buy-now-pay-later loans, reports Business Insider and Al Jazeera.