Klarna Group, which provides a platform for e-commerce payment plans, raised $1.4 billion by offering 34.3 million shares (85% secondary) at $40, above the range of $35 to $37.
After about a month without any major listings, the US IPO market is back from its annual August break with seven sizable deals scheduled for this week, the biggest week for IPO activity since 2021. The IPO market has spent much of the past three years producing below-average deal flow, which makes this an important week for the the long-awaited IPO rebound, and a key gauge of investor demand in new issues. Klarna is first up, with the remaining six deals scheduled for Thursday and Friday.
Klarna is the year's fourth-largest IPO, behind Venture Global (VG), CoreWeave (CRWV), and SailPoint (SAIL). By deal size, Klarna is the year's biggest offering for a company funded by venture capital, ahead of Figma (FIG). Klarna is also the latest in a string of fintech IPOs this year, with another scheduled to list tomorrow, Figure (FIGR).
So far this year, 18 other sizable IPOs have priced above the proposed range; all but one (Sailpoint) traded up initially, and the group has averaged a first-day pop of 58% from the offer price. However, while the group still averages a strong return from offer (49%), over half have traded down since the first day.
Backed by Sequoia Capital, Klarna is best known for its buy-now-pay-later plans, including its four-part interest-free payment plan. It also offers its own "Klarna Card" in partnership with Visa, and its own app offering cashback on e-commerce purchases made through it. Klarna states it has about 111 million active customers, and 790,000 merchants in 26 countries as of June 30, 2025. It also states that it facilitated $112 billion of GMV and that 98% of facilitated transactions were interest-free in the 12 months ended June 30, 2025.
Based in the UK but with roots in Sweden, Klarna Group was founded in 2005, and plans to list on the NYSE under the symbol KLAR. Goldman Sachs, J.P. Morgan, Morgan Stanley, BofA Securities, Citi, Deutsche Bank, Societe Generale, and UBS Investment Bank acted as joint bookrunners on the deal.
