Will Klarna SPAC or IPO in 2025?
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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July 27, 2025
08:05 AM
The Motley Fool
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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.
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