Klarna’s $1.4B IPO Pops on NYSE: Sequoia Wins Big

Swedish fintech pioneer Klarna made a triumphant debut on the New York Stock Exchange on Wednesday, raising $1.4 billion in an oversubscribed initial public offering (IPO) that primarily benefited its early backers rather than the company’s treasury.

Valuation Surges as Shares Pop on NYSE Debut

The buy-now-pay-later (BNPL) giant priced its shares at $40, exceeding its initial target range of $35 to $37, which secured the company a starting valuation of $15 billion. Trading opened strong with shares jumping to $52 before stabilizing around $46 by midday.

Sequoia Capital and Early Backers Cash In

Of the 34.3 million shares traded during the debut, Klarna itself sold only 5 million, it said. The remaining volume was offloaded by early investors seeking liquidity. Sequoia Capital, Klarna’s largest shareholder, led the exit alongside Silver Lake, BlackRock, and Danish billionaire Anders Holch Povlsen. Despite cashing out substantial portions, these major institutional backers continue to hold the majority of their equity stakes.

This liquidity-focused strategy closely mirrors Figma’s previous public listing. Venture capitalists often choose to release shares during an IPO not just for immediate cash-outs, but to satisfy high market demand. Increasing the public float helps establish a more accurate, premium valuation from day one, making the stock highly attractive to massive institutional buyers who require large allocations to participate.

Where the Co-founders Stand After the IPO

In contrast to early investors, co-founder and CEO Sebastian Siemiatkowski did not sell any of his holdings. Holding a 7.5% stake in the company, his net worth in Klarna stock was valued at $1.02 billion at the IPO offer price.

Meanwhile, co-founder Victor Jacobsson, who stepped down from operational roles in 2012, capitalized on the event by selling 1.1 million shares. He remains one of the company’s largest individual shareholders, maintaining an ownership stake of over 8%. The third co-founder, Niklas Adalberth, still retains just under 3 million shares, Klarna disclosed.

From Stockholm Reject to Wall Street Giant

Sequoia Capital remains the dominant power behind the fintech, controlling nearly 23% of the company. Legendary venture capitalist Michael Moritz wrote Klarna’s very first seed check on behalf of Sequoia back in 2010. Moritz remained as Klarna’s chairperson even after departing Sequoia in 2023. This deep relationship saw some friction when Sequoia added another member to the board, but tensions eased in 2024 when Sequoia’s Andrew Reed officially stepped into a board seat.

“This moment feels surreal,” Siemiatkowski shared in published remarks. “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.”

Siemiatkowski added that going public in New York represents a monumental achievement: “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.”

How Klarna’s Debut Compares to 2025’s Biggest IPO

While Klarna’s $1.4 billion capital raise marks a massive milestone for the global fintech sector, it does not claim the title of the largest public debut of 2025. That record is still held by artificial intelligence infrastructure provider CoreWeave, which raised $1.5 billion during its June listing.