Klarna’s Landmark NYSE Debut: From Swedish Startup to $18.9 Billion Global Fintech Leader

A Historic Market Entry

Klarna’s much-anticipated debut on the New York Stock Exchange has exceeded expectations, with shares indicated to open up to 25% above its IPO price of $40 per share, potentially valuing the company at $18.89 billion.

Company Overview and Recent Performance

The 20-year-old Swedish company, known for its short-term “buy now, pay later” consumer loans, entered the US market in 2019. In its latest quarter, Klarna reported revenue of $823 million, marking its fifth consecutive profitable quarter, while serving 111 million active consumers worldwide through a network of 790,000 merchant partners. Over the past year alone, the company has added 202,000 new partners.

Financial Transformation and Growth

After experiencing a dramatic valuation drop from $45.6 billion in 2021 to $6.7 billion in 2022, Klarna has demonstrated remarkable resilience, with its valuation rebounding to approximately $14.6 billion. The company’s recent performance shows improved consumer payment behavior, with record numbers of on-time transactions and low credit provisions at 0.56% of gross merchandise volume. Realized losses have decreased to 0.45% from 0.48% year-over-year.

Strategic Developments and Future Outlook

Klarna has undergone significant operational changes, reducing its workforce by approximately 40% while increasing its tech employee ratio from 36% in 2022 to 52% in Q1 2025. The company has embraced AI technology, with 96% of employees using AI daily. According to Klarna’s Chief Financial Officer Niclas Neglén, the public listing represents “an opportunity for new shareholders and our 111 million consumers to partake in the journey to disrupt the financial services industry and be the next generation of personal finance”.