Klarna Makes New Attempt at IPO

Swedish fintech giant Klarna is preparing to revive its long-delayed plans for a stock market debut. After shelving its initial public offering (IPO) earlier this year due to market uncertainty, the company is now eyeing a September listing in the United States, according to reports.

If successful, the IPO could value Klarna at between $13 billion and $14 billion, with the firm expected to raise close to $1 billion from the offering. Shares could be priced in the range of $34 to $36 this week, Reuters reported, citing people familiar with the matter.

From Delay to Opportunity

Back in April, Klarna postponed its IPO ambitions as global markets reacted to tariff moves by U.S. President Donald Trump. Those trade policy shifts rattled investor sentiment, creating an environment too unstable for a major listing.

This is not Klarna’s first IPO attempt. As far back as 2021, the “buy now, pay later” pioneer was considering a flotation at a valuation approaching $50 billion, amid booming investor appetite for fintech. But shifting interest rates, investor caution, and tougher credit conditions have since lowered market expectations for fast-growing but loss-making firms.

Improved Market Conditions

The company’s renewed attempt comes at a time when the IPO environment has brightened considerably. Recent high-profile listings in the U.S., including design software company Figma and stablecoin issuer Circle, have seen dramatic price gains. Shares of those firms surged as much as 333% and 864% from their issue prices, fueling optimism for upcoming offerings.

Overall, the 20 largest U.S. IPOs of the year delivered an average 36% first-day increase, according to Reuters calculations. That momentum has encouraged companies like Klarna to return to the market, betting that investor appetite for growth stocks has revived.

Growth and Challenges

Klarna has continued to expand its business, though profitability remains elusive. In the second quarter, the company reported a 20% year-on-year increase in revenue, reaching $823 million. Adjusted operating profit ticked up by $1 million to $29 million, while active customer numbers climbed 31% to 111 million.

Yet beneath those growth figures lies a significant challenge: Klarna posted a net loss of $53 million in Q2, nearly three times the loss recorded in the same period of 2024. The figures highlight the difficulty of balancing rapid expansion with sustainable earnings, particularly in a high-interest-rate environment that raises funding costs for credit providers.

Outlook

For Klarna, the upcoming IPO represents both a milestone and a test. The company has built global recognition with its “buy now, pay later” model, reshaping how millions of consumers manage credit and online shopping. But convincing public investors will require not just a compelling growth story, but also a clear path to profitability.

If successful, Klarna’s listing could reinforce the view that investor confidence in fintech and growth companies is returning. However, sustained losses mean the company will remain under close scrutiny. In an era of rising interest rates and tighter regulation, the IPO will be as much about strategy as valuation.

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