Swedish fintech firm Klarna officially enters the public markets this week, launching its long awaited listing on the New York Stock Exchange after securing $1.37 billion through its initial public offering. The move marks a significant milestone for the buy now, pay later (BNPL) pioneer and reflects a broader resurgence in U.S. IPO activity.
Klarna leads a cohort of seven companies including the Gemini crypto exchange founded by the Winklevoss twins set to go public in New York by Friday. This flurry of listings represents the most active IPO week in years, following a prolonged lull triggered by market volatility and global trade tensions.
Earlier in 2025, Klarna and other high profile firms had paused their IPO plans due to tariff-related disruptions. Now, with improved market conditions, Klarna has priced 34.3 million shares at $40 each above its initial range giving the company a valuation of $15.1 billion. While this figure is well below its 2021 peak of $45.6 billion, it marks a strong recovery from the $6.7 billion valuation it faced during the inflation-driven downturn in 2022. Founded in 2005, Klarna has grown into a global BNPL leader, offering short-term installment options that have become increasingly popular since the pandemic. As consumers face persistent inflation and economic uncertainty, flexible payment models like Klarna’s are gaining traction.
The IPO also serves as a litmus test for investor sentiment toward the BNPL sector. Klarna’s U.S. based competitor, Affirm, currently holds a $29 billion market cap and has seen its stock rise 45% this year. Affirm’s average order value stands at $276, compared to Klarna’s $101, highlighting their differing market strategies Affirm targets larger purchases with longer-term financing, while Klarna focuses on smaller, short-term transactions.