Swedish Fintech Giant Klarna Files for US IPO

Klarna Group Plc, the Swedish buy now, pay later (BNPL) pioneer, has confidentially submitted draft registration documents to the U.S. Securities and Exchange Commission (SEC), setting the stage for one of the most anticipated fintech IPOs of 2025. The move comes as the company’s valuation has rebounded to approximately $14.6 billion, marking a significant recovery from its 2022 low of $6.7 billion.

The Stockholm-based company has enlisted Goldman Sachs Group Inc., JPMorgan Chase & Co., and Morgan Stanley to orchestrate the public offering, according to sources familiar with the matter. While specific details about share quantities and pricing remain undetermined, the listing is expected to proceed following the SEC’s review process, subject to market conditions.

The decision to list in the United States represents a notable setback for European exchanges, particularly the London Stock Exchange, which has been actively working to attract high-profile tech listings. Klarna’s choice aligns with its aggressive U.S. expansion strategy and follows a broader trend of European technology companies seeking higher valuations on American exchanges.

The company’s journey to this point has been marked by dramatic valuation swings. After reaching a peak valuation of $45.6 billion in 2021 during a SoftBank-led funding round, Klarna experienced an 85% valuation drop amid global market turbulence sparked by the Ukraine conflict and rising interest rates. However, recent reports indicate a strong recovery, with investor Chrysalis Investments Ltd’s latest valuation assessment suggesting renewed market confidence in the fintech sector.

The IPO announcement comes despite recent boardroom tensions, which culminated in the October ouster of board member Mikael Walther following clashes with Chairman Mike Moritz and CEO Sebastian Siemiatkowski. Founded in 2005, Klarna has evolved beyond its BNPL roots to offer a comprehensive suite of financial services, including shopping assistance, checkout solutions, and banking products.

For the broader fintech industry, Klarna’s public debut could serve as a crucial benchmark, particularly as it follows the path of competitors like Affirm, which went public in 2021 and currently maintains an $18 billion market valuation.