Klarna Stock IPO Soars: What You Need to Know
ByAinvest
Saturday, Sep 13, 2025 2:33 am ET2min read
KLAR--
Klarna, founded in 2005, has been expanding its presence in the US market since 2015, partnering with major retailers such as Walmart and Macy's. The company's innovative payment plans, including the popular "pay-in-4" option, have attracted over 111 million users worldwide. Klarna's platform offers flexible payment terms, allowing customers to split purchases into four installments over six weeks, with no interest on small loans paid within 30 days. However, the company charges late fees and interest on larger purchases [1].
The IPO has minted billionaires among Klarna's founders. CEO and co-founder Sebastian Siemiatkowski's 7% stake is now worth approximately $1 billion, while co-founder Victor Jacobsson's 8.4% stake is valued at $1.3 billion. Early investor Sequoia Capital holds 21% of the firm, worth roughly $3.15 billion, while Silver Lake owns 4.5% [1].
Klarna's second-quarter revenue stood at $823 million, with an adjusted profit of $29 million. Loan delinquency rates for short-term loans are at 0.89%, and for longer-term loans, at 2.23%, both below the average 30-day credit card delinquency rate [1]. With its debut, Klarna becomes the second-largest BNPL company by market cap after Affirm, whose shares have risen over 40% this year to a valuation of $28 billion [1].
Klarna's IPO was underwritten by JPMorgan Chase and Goldman Sachs. The company's underwriting capabilities are seen as a key differentiator, allowing it to quickly adjust standards in response to economic shifts. Klarna's CEO, Sebastian Siemiatkowski, highlighted the US market's potential, stating, "It’s the largest consumer market in the world, and it’s the biggest credit card market in the world. It’s a tremendous opportunity, from our perspective" [1].
In the week preceding Klarna's IPO, seven sizable IPOs debuted, marking the busiest week for IPOs since 2021. Other notable debuts included blockchain-powered lending platform Figure Technology (FIGR), neuropsychiatry biotech LB Pharmaceuticals (LBRX), and crypto exchange Gemini (GEMI) [2]. This week also saw the filing of initial filings by Alliance Laundry Holdings (ALH), Lendbuzz (LBZZ), and Fermi (FRMI) [2].
With its strong performance and strategic partnerships, Klarna is well-positioned to capitalize on the growing demand for flexible payment options in the US market. As the company continues to expand its merchant network and enhance its AI-based data insights, investors and financial professionals will closely monitor its progress.
Klarna, a buy-now, pay-later company, has gone public with its IPO, closing 15% higher than its IPO price of $40. The company offers flexible payment options, including credit cards and AI-based data insights. It partners with top brands like Disney and Adidas and has 790,000 merchants globally. Klarna's main feature is no interest on small loans paid within 30 days, but it charges late fees and interest on larger purchases. Management sees its underwriting capabilities as a key differentiator.
Swedish buy-now-pay-later (BNPL) company Klarna made its highly anticipated public debut on the New York Stock Exchange (NYSE) on September 12, 2025. The company's shares surged 30% on the first day of trading, closing at $52 after an initial public offering (IPO) price of $40. This robust performance positions Klarna as the fourth-largest IPO of 2025 so far, raising $1.37 billion by selling over 34 million shares [1].Klarna, founded in 2005, has been expanding its presence in the US market since 2015, partnering with major retailers such as Walmart and Macy's. The company's innovative payment plans, including the popular "pay-in-4" option, have attracted over 111 million users worldwide. Klarna's platform offers flexible payment terms, allowing customers to split purchases into four installments over six weeks, with no interest on small loans paid within 30 days. However, the company charges late fees and interest on larger purchases [1].
The IPO has minted billionaires among Klarna's founders. CEO and co-founder Sebastian Siemiatkowski's 7% stake is now worth approximately $1 billion, while co-founder Victor Jacobsson's 8.4% stake is valued at $1.3 billion. Early investor Sequoia Capital holds 21% of the firm, worth roughly $3.15 billion, while Silver Lake owns 4.5% [1].
Klarna's second-quarter revenue stood at $823 million, with an adjusted profit of $29 million. Loan delinquency rates for short-term loans are at 0.89%, and for longer-term loans, at 2.23%, both below the average 30-day credit card delinquency rate [1]. With its debut, Klarna becomes the second-largest BNPL company by market cap after Affirm, whose shares have risen over 40% this year to a valuation of $28 billion [1].
Klarna's IPO was underwritten by JPMorgan Chase and Goldman Sachs. The company's underwriting capabilities are seen as a key differentiator, allowing it to quickly adjust standards in response to economic shifts. Klarna's CEO, Sebastian Siemiatkowski, highlighted the US market's potential, stating, "It’s the largest consumer market in the world, and it’s the biggest credit card market in the world. It’s a tremendous opportunity, from our perspective" [1].
In the week preceding Klarna's IPO, seven sizable IPOs debuted, marking the busiest week for IPOs since 2021. Other notable debuts included blockchain-powered lending platform Figure Technology (FIGR), neuropsychiatry biotech LB Pharmaceuticals (LBRX), and crypto exchange Gemini (GEMI) [2]. This week also saw the filing of initial filings by Alliance Laundry Holdings (ALH), Lendbuzz (LBZZ), and Fermi (FRMI) [2].
With its strong performance and strategic partnerships, Klarna is well-positioned to capitalize on the growing demand for flexible payment options in the US market. As the company continues to expand its merchant network and enhance its AI-based data insights, investors and financial professionals will closely monitor its progress.
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