Klarna is set to revive its plans for a US initial public offering next month, targeting a valuation between US$13 billion and US$14 billion, according to two sources familiar with the matter.

The Swedish fintech company had delayed its IPO in April due to market uncertainty following tariffs imposed by the US.

The potential share price could range from US$34 to US$36, the sources said.

Klarna previously sought a valuation of nearly US$50 billion in 2021 and was valued at over US$15 billion earlier this year.

One source said the company aims to raise about US$1 billion from the listing.

Klarna declined to comment.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Fintech valuations have undergone dramatic corrections from pandemic peaks

Klarna’s IPO journey illustrates the massive valuation reset across fintech companies since their pandemic-era highs.

The company’s valuation peaked at $45.6 billion in 2021 but dropped to $14.6 billion in private markets before its current $13-14 billion IPO target1. This represents a roughly 70% decline from peak valuation, demonstrating how investor sentiment has shifted from growth-at-any-cost to sustainable profitability.

This correction reflects broader market dynamics where Klarna went from being the fourth most valuable private fintech globally at $10.65 billion in September 20202 to facing significantly reduced investor appetite just years later.

The company’s valuation trajectory—from $5.5 billion in 20193 to $45.6 billion in 2021, then crashing to current levels—mirrors the broader fintech sector’s boom-bust cycle during and after the pandemic.

2️⃣ External economic shocks continue reshaping IPO timing and strategy

Klarna’s delayed IPO timeline demonstrates how geopolitical and economic factors now heavily influence fintech public market strategies.

The company postponed its April IPO plans due to global market uncertainty, reflecting how fintech companies must now factor broader economic disruptions into their public offering timing.

Recent Klarna developments