Will Klarna SPAC or IPO in 2025?
Investment
The Motley Fool

Will Klarna SPAC or IPO in 2025?

July 27, 2025
08:05 AM
4 min read
AI Enhanced
financeinvestmenteconomymoneystocksfinancialfinteche-commerce

Key Takeaways

Klarna was one of the most anticipated new fintech stocks of 2025 until tariffs threw a monkey wrench into its plans of going public.

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4 min read

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investment

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Published

July 27, 2025

08:05 AM

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The Motley Fool

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Key Topics
financeinvestmenteconomymoneystocksfinancialfinteche-commerce

The analysis demonstrates Investors have been eagerly waiting Klarna's public listing

The Swedish fin company, most famous for offering buy now, pay later (BNPL) services, has 100 million active consumers across 26 countries

Klarna was close to becoming a publicly traded company earlier this year until the Trump administration announced import tariffs on "Liberation Day. " If you're wondering whether you'll be able to invest in Klarna in 2025, here's what's known

Image source: Getty Images (noteworthy indeed)

Klarna's IPO is on hold Klarna filed its spectus for an initial public offering (IPO) in March of this year and planned to go public in April

Those plans changed at the last minute after President Trump announced sweeping import tariffs

Due to the economic uncertainty and the stock market sell-off, Klarna paused its IPO, in today's financial world

Additionally, Klarna hasn't announced a new IPO date yet and is reportedly planning to wait until after the summer, according to a report from Dagens Industri, a Swedish financial newspaper

However, management hasn't confirmed that timeline

Moreover, The analysis reveals way Klarna will go public is confirmed; it will hold a traditional IPO

It won't use a special purpose acquisition company (SPAC), a shell company that goes public and then seeks out a merger with a private company

While SPAC IPOs have been growing in ity, Klarna ruled out that option years ago

Will Klarna be a good investment opportunity

However, Klarna has been successful as a BNPL company -- it's the fourth largest in terms of U

Users, according to Statista -- but it faces concerns its model and financial losses, considering recent developments

BNPL companies are heavily reliant on the economy and interest rates

When the economy is strong, consumers are more willing to finance discretionary purchases through services Klarna (noteworthy indeed)

During downturns, people tighten up their spending, considering recent developments

Interest rates also impact BNPL companies by increasing their funding costs, especially since these companies normally offer interest-free plans, amid market uncertainty

Klarna's revenue has been steadily growing, jumping 24% to $2. 8 billion in 2024

Net fit was $21 million, a 109% imvement from 2023, when the company posted a net loss of $244 million

However, it was only fitable because of a net gain of $171 million related to its sale of Klarna Checkout

Klarna was back to losing money in 2025's first quarter, with a net loss of $99 million, a 110% year-over-year increase

On the other hand, That said, you could make a compelling bull case for Klarna (this bears monitoring)

Additionally, Its customer base is growing rapidly (18% year over year as of Q1 2025), and so is the number of merchants who accept Klarna (up 27% year over year) (fascinating analysis)

Klarna is also expanding its offerings

Last month, Klarna and Visa (NYSE: V) launched a debit card that lets cardholders pay in full upfront or use pay later options, and Klarna announced it's launching wireless service plans, fellow fin companies Revolut and Nubank have done

However, Furthermore, Another area in which Klarna has shown mise is the incorporation of artificial intelligence (AI) nology

It started a collaboration with OpenAI in 2023 to incorporate Klarna shopping results into ChatGPT answers, considering recent developments

Klarna has also leveraged AI to cut costs

However, It estimates that AI is responsible for $10 million per year in savings on sales and marketing spending

However, Klarna will ly go public in the near future Investors bably won't need to wait too much longer for Klarna to be available on the stock market

However, Polymarket, a prediction platform, currently has the odds of a 2025 Klarna IPO at 75%

Additionally, There have also been several successful IPOs since the stock market turmoil in April, including Circle (NYSE: CRCL) and Chime (NASDAQ: CHYM), which could convince Klarna's management to take the plunge

Nevertheless, Stocks can be volatile in the early days, so even when Klarna goes public, you may want to exercise patience before buying any s

In contrast, For a potential point of comparison, investors can look at Affirm (NASDAQ: AFRM), a BNPL company that its IPO in 2021 (quite telling)

In its first year on the market, it went through several wild price swings

Conversely, It's currently (as of July 23) 61% off the all-time high it reached in November 2021, in light of current trends

IPO stocks can be good long-term investments, but the hype surrounding them sometimes leads to overvaluations

If you're thinking in Klarna, estimate a fair price for it before the IPO and use that to decide whether to buy early or wait for the initial hysteria to wear off.