Klarna revives U.S. IPO plan at $13–14B valuation, a far cry from Its $46B peak

Klarna is once again heading for Wall Street. The Swedish fintech giant plans to restart its long-awaited U.S. IPO next month, targeting a valuation between $13 billion and $14 billion, according to people familiar with the deal. The company hit pause in April after President Donald Trump’s sweeping tariffs shook markets, but it now wants to move ahead as conditions stabilize.

The stock could be priced as early as this week in the $34 to $36 range, the sources said. Klarna is expected to raise close to $1 billion in the offering, marking one of the biggest fintech listings of the year. The company declined to comment.

From $46B to $14B: Swedish Fintech Startup Klarna to Relaunch U.S. IPO With Lower Valuation

The valuation marks a steep reset from its pandemic-era heights. Once one of Europe’s most prized startups, Klarna reached a staggering $46 billion valuation in a SoftBank-led funding round in 2021. But the buy-now-pay-later pioneer saw its worth collapse by 85% in 2022, dropping to $6.7 billion. Since then, it has been working its way back. Analysts now peg Klarna’s value closer to $15 billion, fueled by a return to profitability and strong revenue growth.

That turnaround showed in its most recent earnings. Klarna reported second-quarter revenue of $823 million, up 20% year-over-year, with adjusted operating profit climbing to $29 million, Reuters reported. Active customers jumped 31% to 111 million. For all of 2023, the company swung from a $49 million adjusted operating loss to a $181 million profit, while total revenue climbed 24% to $2.8 billion,

The renewed IPO push comes as equity markets show fresh appetite for new listings. High-profile debuts from Figma and Circle have soared, with shares climbing 333% and 864% above their offering prices in the days following their debut. The 20 largest U.S. IPOs this year have averaged a 36% first-day pop, according to data from LSEG.

Still, the timing is delicate. The Nasdaq has endured four straight weeks of losses, underscoring how quickly sentiment can shift. Klarna’s return will test whether investors believe its comeback is real—and whether buy-now-pay-later still has legs in a market crowded with Affirm, Afterpay, Visa, Mastercard, and even big banks chasing the same customers.

Founded in 2005 by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, Klarna reshaped online shopping with its installment payment model. The company has operated as a licensed bank in Europe since 2017 and is now pursuing a U.S. banking license to deepen its foothold. In America, it currently partners with WebBank to offer its financing products.

After years of whiplash valuations, Klarna’s IPO will be one of the most closely watched tests for fintech in 2025. If successful, it could restore some of the luster lost since its pandemic-era peak—and open the door for other late-stage startups sitting on the sidelines.