Klarna IPO: $1.4B Raised, Sequoia Capital Benefits

Klarna's Long-Awaited IPO on the NYSE

After a considerable period, the 20-year-old financial technology firm, Klarna, has successfully completed its initial public offering (IPO). The company debuted on the New York Stock Exchange on Wednesday, securing $1.4 billion in funding, primarily benefiting its current investors.

Share Pricing and Valuation

Klarna offered its shares at $40, exceeding the previously announced price range of $35 to $37. This resulted in a market capitalization of $15 billion upon entering the market. Initially, the stock price surged, opening at $52, but subsequently stabilized around $46 during midday trading.

Investor Dynamics

Out of the 34.3 million shares sold, only 5 million were newly issued by the company itself. The remaining shares were offered by existing investors, including Sequoia Capital, Klarna’s largest stakeholder. Other entities, such as those controlled by Danish billionaire Anders Holch Povlsen, Silver Lake, and BlackRock, also participated in the sale.

Despite some investors realizing profits, the majority continue to hold onto their substantial stakes in the company.

Similarities to Figma's IPO

This approach mirrors the IPO strategy employed by Figma. A venture capital source explained to TechCrunch that existing investors often contribute shares to fulfill IPO demand, rather than selling at the initial offering price.

Increasing the number of available shares can lead to a more precise, and potentially higher, valuation, attracting significant institutional investors who typically require substantial allocations.

Stakeholder Holdings

Klarna’s co-founder and CEO, Sebastian Siemiatkowski, did not sell any of his shares during the IPO. His ownership stake was valued at $1.02 billion based on the $40 IPO price, representing approximately 7.5% of the company.

Victor Jacobsson, a co-founder who departed in 2012, did sell a portion of his holdings – 1.1 million shares – but remains a significant shareholder, retaining over 8% of Klarna.

Niklas Adalberth, another co-founder, currently owns nearly 3 million shares, as disclosed by Klarna.

Sequoia Capital's Influence

Sequoia Capital is the largest investor in Klarna, controlling almost 23% of the company. Michael Moritz of Sequoia made the initial investment in 2010 and continued as Klarna’s chairperson even after leaving Sequoia in 2023.

Some internal disagreements arose when Sequoia appointed an additional member to Klarna’s board, but these were resolved with the appointment of Andrew Reed in 2024.

CEO's Reflections

“This moment feels surreal,” Siemiatkowski stated. “When we launched Klarna in 2005, it began as a simple concept – Niklas, Victor, and I aimed to streamline the shopping and payment experience for consumers. We faced numerous rejections and skepticism, but we persevered.”

He added, “Becoming a public company in New York is a momentous occasion. It signifies not only a milestone but also a demonstration that a determined group of innovators from Stockholm can achieve global success.”

IPO Funding Compared

While $1.4 billion is a substantial amount, it does not represent the largest IPO of 2025. CoreWeave currently holds that distinction, having raised $1.5 billion in June.

Note: A correction was made to clarify the nationality of Anders Holch Povlsen. The information has been updated accordingly.