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Swedish payments group Klarna is reviving its plan to list in the United States, targeting a valuation of between $13 billion and $14 billion, according to two people familiar with the matter.
The buy-now-pay-later pioneer had paused its IPO ambitions in April after global markets were unsettled by sweeping U.S. tariffs introduced by President Donald Trump. Klarna had also explored going public in 2021 at a valuation close to $50 billion but ultimately held back.
Shares in the upcoming offering could be priced between $34 and $36, with the deal potentially launching as early as this week, the sources said. Klarna is looking to raise about $1 billion from the transaction, one of the people added.
The move comes as equity markets rebound and new listings draw strong investor demand. Design software maker Figma and stablecoin issuer Circle are among recent IPOs whose shares surged as much as 333% and 864% above their issue prices in early trading.
According to LSEG data, the 20 largest U.S. IPOs so far in 2025 have recorded an average 36% first-day jump.
Klarna’s Growth
Founded in 2005, Klarna has reshaped online shopping with its installment-based financing model, now widely imitated by rivals. The company reported earlier this month that second-quarter revenue rose 20% year-on-year to $823 million on a like-for-like basis, while adjusted operating profit reached $29 million, up $1 million from a year earlier.
Its customer base also continued to expand, with active users climbing 31% to 111 million.
Klarna processes more than 2 million transactions per day and partners with over 500,000 global merchants, including major retailers such as H&M, Macy’s, and Sephora. Its app has been downloaded more than 150 million times worldwide, making it one of the most widely used BNPL platforms.
The planned valuation of $13–14 billion represents a steep discount from Klarna’s 2021 ambitions of nearly $50 billion and is slightly below the more than $15 billion figure discussed earlier this year. Still, a successful listing could mark one of the biggest U.S. fintech IPOs in 2025 and provide a crucial test of investor appetite for the sector.
The IPO also comes after Klarna cut its losses sharply in 2023, when it posted its first quarterly operating profit in four years. In 2022, the company had reported a $1 billion annual loss amid surging credit defaults and higher funding costs. The turnaround — driven by cost-cutting and stronger U.S. expansion — has been key in reviving investor confidence.
Klarna’s biggest markets today are the U.S., Germany, and Sweden, with the U.S. now accounting for more than 30% of its transaction volume. Its main competitors include Affirm in the U.S. and Afterpay, owned by Block (formerly Square), in Australia.
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