Klarna’s remarkable 20-year journey culminated in a spectacular New York Stock Exchange debut that raised $1.4 billion, primarily benefiting existing investors including venture giant Sequoia Capital. The fintech company’s highly anticipated Klarna IPO exceeded expectations, opening strongly above its target range and demonstrating robust market confidence in the buy-now-pay-later pioneer.
Klarna IPO Valuation and Share Performance
Klarna priced its shares at $40, surpassing the announced $35-$37 range. Consequently, the company achieved an impressive $15 billion valuation at opening. Shares experienced an immediate surge, opening at $52 before stabilizing around $46 midday. This successful pricing strategy reflects strong investor demand for the Klarna IPO.
Investment Distribution in Klarna IPO
Of the 34.3 million shares sold during the Klarna IPO, only 5 million came from the company itself. Significantly, existing investors sold the remaining shares. Sequoia Capital, as Klarna’s largest shareholder controlling nearly 23% of the company, emerged as the biggest winner. Additionally, entities controlled by Dutch billionaire Anders Holch Povlsen, Silver Lake, and BlackRock participated in the offering.
Founder Stakes and Investment Strategy
CEO Sebastian Siemiatkowski retained his entire 7.5% stake, valued at $1.02 billion at the IPO price. Co-founder Victor Jacobsson sold 1.1 million shares but maintains over 8% ownership. Niklas Adalberth retains just under 3 million shares. This Klarna IPO strategy mirrors recent successful offerings like Figma, where existing investors help meet demand while maintaining majority stakes.
Sequoia Capital’s Klarna Investment Journey
Sequoia Capital’s relationship with Klarna began in 2010 when Michael Moritz wrote the first check. Moritz remained as Klarna’s chairperson even after leaving Sequoia in 2023. The venture firm recently added Andrew Reed to Klarna’s board in 2024, strengthening their governance role. This long-term partnership exemplifies successful venture capital backing in the fintech sector.
Market Context and Industry Impact
The $1.4 billion Klarna IPO represents one of 2025’s largest public offerings, though it falls slightly behind CoreWeave’s $1.5 billion June offering. Industry experts note that existing investors often contribute shares to help companies achieve optimal valuations. This approach attracts larger institutional investors who require meaningful allocations, ultimately benefiting the company’s market debut.
Leadership Perspective and Company Vision
“This moment feels surreal,” shared CEO Siemiatkowski in published remarks. “When we started Klarna back in 2005, it was just a wild idea—me, Niklas, and Victor trying to make shopping and payments smoother.” He emphasized the significance of their New York listing, calling it “proof that stubborn dreamers from Stockholm can take on the world—and win.”
FAQs About Klarna’s IPO
How much did Klarna raise in its IPO?
Klarna raised $1.4 billion through its initial public offering on the New York Stock Exchange.
What was Klarna’s IPO valuation?
The company achieved a $15 billion valuation at its $40 per share offering price.
Who benefited most from Klarna’s IPO?
Sequoia Capital, as the largest shareholder controlling nearly 23% of the company, emerged as the biggest beneficiary.
Did Klarna’s founders sell shares during the IPO?
CEO Sebastian Siemiatkowski retained his entire stake, while co-founder Victor Jacobsson sold 1.1 million shares but maintains over 8% ownership.
How does Klarna’s IPO compare to other 2025 offerings?
While Klarna’s $1.4 billion IPO is substantial, CoreWeave holds the 2025 record with its $1.5 billion June offering.
What was the share performance after Klarna’s IPO debut?
Shares opened at $52, significantly above the $40 offering price, before settling around $46 during midday trading.
