After a long and challenging journey, the 20-year-old fintech company Klarna has officially made its debut on the New York Stock Exchange. On Wednesday, Klarna successfully raised $1.4 billion, primarily benefiting its existing investors rather than the company itself. The fintech giant priced its shares at $40, exceeding its previously announced range of $35 to $37, leading to an impressive initial valuation of $15 billion.
Upon its market debut, Klarna's shares opened at $52, although they quickly adjusted to around $46 by midday trading. Out of the total 34.3 million shares sold, only 5 million were newly issued by Klarna itself, while the majority were sold by existing investors. Notable stakeholders included Sequoia Capital, the largest shareholder, alongside entities controlled by Dutch billionaire Anders Holch Povlsen, as well as investment firms like Silver Lake and BlackRock.
Despite the sell-off, these investors retained the majority of their holdings. This strategy mirrors that of other IPOs, such as Figma's, where existing investors often contribute shares to meet demand during the IPO process. By increasing the number of shares available, companies like Klarna can attract significant institutional investors, ultimately leading to a more accurate and potentially higher valuation at launch.
Co-founder and CEO Sebastian Siemiatkowski did not sell any shares during this IPO. His stake, valued at $1.02 billion at the IPO price of $40, represents approximately 7.5% of the company. In contrast, co-founder Victor Jacobsson, who left Klarna in 2012, sold 1.1 million shares but still maintains over 8% ownership. Another co-founder, Niklas Adalberth, retains just under 3 million shares, as disclosed by the company.
Sequoia Capital stands out as the predominant investor in Klarna, owning nearly 23% of the company. The venture capital firm first invested in Klarna in 2010, thanks to Michael Moritz, who wrote Klarna’s initial check and continued his involvement as chairperson until his departure from Sequoia in 2023. Recent board changes included the addition of Andrew Reed from Sequoia in 2024, which resolved some internal dynamics among the board members.
In his remarks following the IPO, Siemiatkowski expressed a sense of disbelief at the milestone achievement. “This moment feels surreal,” he stated. “When we started Klarna back in 2005, it was just a wild idea — me, Niklas, and Victor, fumbling around, trying to make shopping and payments smoother for people. We got rejected left and right, laughed at more times than I can count. But we kept going.”
He further emphasized the significance of going public in New York, stating, “It’s not just a milestone; it’s a statement. It’s proof that a bunch of stubborn dreamers from Stockholm can take on the world — and win.” Klarna's IPO marks a significant chapter in the company's history, highlighting its evolution from a small startup to a formidable player in the global fintech landscape.
