Swedish buy-now, pay-later company Klarna finally made its public market debut on Wednesday, pricing its shares at $40 and closing the day up 15% at $45.82 on the New York Stock Exchange. The IPO raised $1.37 billion and valued Klarna at approximately $17.3 billion by the close of the day.
While a solid outcome, it still trails behind some of 2025’s standout tech IPOs.
Design software company Figma remains this year’s tech IPO hit, with shares skyrocketing over 250% on their opening day in July, tripling the initial $33 price. Similarly, Circle, the stablecoin issuer, soared 168% in its June debut and has since surged more than 400%.
A shift beyond BNPL
What differentiates Klarna’s IPO story is its ongoing transition from a BNPL specialist to a financial services platform. The company has already enrolled 700,000 U.S. debit card customers and maintains a waitlist exceeding 5 million.
The true test lies in executing a longer-term vision of full-stack digital banking amid intense competition. Affirm and Block’s Afterpay remain rivals, while increased regulatory oversight in key markets, such as the U.K., adds complexity.
Winners, losers, and a bigger picture
Among Klarna’s early investors, Sequoia Capital is a clear winner, turning its $500 million stake into roughly $2.65 billion at the offering price. In contrast, SoftBank, which participated in the company’s 2021 funding round valuing Klarna at $46 billion, faces unrealised losses after the valuation reset.
For Klarna, the public market journey is just beginning. With new capital and a strategic pivot underway, it now faces the challenging task of scaling banking products, managing credit risk, and navigating evolving regulatory requirements. Execution will determine whether Klarna moves beyond BNPL volatility to carve out durable market leadership.
