After a brutal down-round in 2022 and a long pause on IPO ambitions, Klarna is reportedly preparing to revive its public listing plans — possibly as soon as autumn 2025. The Swedish buy-now-pay-later (BNPL) giant is testing the waters for a market comeback that would not only mark a milestone for Klarna itself but could also signal a broader reopening of fintech IPO appetite.
From Unicorn Darling to Humbling Reset
Klarna’s story has been a rollercoaster:
- 2021 valuation: $46 billion (one of Europe’s most valuable startups)
- 2022 valuation: Slashed to $6.7 billion in a dramatic down-round
- 2023–2024: Retrenchment, cost-cutting, AI rollout, and profitability push
Now, with interest rates stabilizing and investor sentiment slowly returning to growth stocks, Klarna is reportedly testing investor interest for a potential IPO on a major U.S. exchange.
Why Klarna Might Move Now
- Improved performance
Klarna has emphasized its return to monthly profitability and expanded its AI-powered tools for merchants and shoppers alike. - Rebounding fintech sentiment
Market appetite for fintech IPOs is cautiously returning. Stripe, Revolut, and Chime are also watching the window closely. - U.S. market exposure
Klarna generates much of its growth from the U.S., making a New York listing logical — and potentially more lucrative.
But Hurdles Remain
- Valuation scars linger: Investors burned by Klarna’s 2022 markdown may need convincing.
- BNPL under pressure: Regulators are still tightening scrutiny, and Klarna faces stiffer competition from Apple Pay Later, Affirm, and others.
- IPO markets remain selective: Profitability is no longer optional — Klarna’s books will face intense scrutiny.
IPO or PR Play?
It’s unclear whether Klarna’s autumn timing is firm or more of a strategic signal to test sentiment and gather leverage in private fundraising talks.
The company may also be waiting for regulatory clarity, especially in Europe where consumer credit rules are being rewritten — rules that could reshape BNPL’s economics.
The Bottom Line
Klarna’s IPO would be more than just a listing — it would be a litmus test for whether the fintech sector is ready for public-market prime time again.
If it pulls it off, Klarna could reclaim its narrative as not just a survivor of the post-ZIRP hangover — but a leader in the next chapter of financial innovation.
Swipe right, or swipe left — investors may soon get the chance to decide.
