It’s been a long road for Klarna. The Swedish fintech that set out in 2005 with a simple ambition—making online shopping smoother—finally arrived on the New York Stock Exchange on Wednesday, capping a 20-year journey with one of the most closely watched public debuts of 2025.

The listing raised $1.4 billion, though the proceeds largely went to existing investors rather than the company itself. Klarna priced shares at $40, above its announced range of $35 to $37, giving it a $15 billion valuation at the open. Investor appetite was evident when the stock popped to $52 at the opening bell before settling back to around $46 mid-day.

In total, 34.3 million shares were sold, but only 5 million came directly from Klarna. The rest were offered by long-time backers such as Sequoia Capital, the company’s largest shareholder, along with entities tied to Dutch billionaire Anders Holch Povlsen, private equity firm Silver Lake, and asset manager BlackRock. All of them cashed out only a fraction of their holdings and continue to retain significant stakes.

That decision mirrors what happened with Figma’s IPO. Venture capitalists often float additional shares to meet market demand, helping to draw in large institutional investors who prefer bigger allocations. By widening the pool, Klarna was able to secure stronger price discovery and a higher valuation out of the gate.

Chief Executive and co-founder Sebastian Siemiatkowski was among those who chose not to sell. His 7.5% stake, worth $1.02 billion at the IPO price, underlines his decision to bet on Klarna’s long-term prospects. By contrast, co-founder Victor Jacobsson, who stepped down from the company in 2012, cashed in 1.1 million shares but still holds more than 8%. A third co-founder, Niklas Adalberth, retains just under 3 million shares.

Sequoia Capital remains the dominant force on Klarna’s cap table, controlling nearly 23% of the company. The venture firm first invested in 2010 when famed partner Michael Moritz wrote Klarna’s first check, later serving as board chair for years. Moritz stepped away in 2023, sparking some drama as Sequoia sought to rebalance its board representation, but the episode was resolved with partner Andrew Reed taking a seat in 2024.

For Siemiatkowski, the IPO is the culmination of a vision that began as a student project. “This moment feels surreal,” he said in remarks published on Wednesday. “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.”

He added that going public in New York was more than just a financial milestone. “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.”

Interestingly, though, $1.4 billion is not the record for the biggest IPO of 2025. That title remains with AI cloud firm CoreWeave, which raised $1.5 billion in June. Yet for the BNPL pioneer, finally securing its listing after years of speculation—and after shelving earlier attempts during periods of market turmoil—the debut represents both vindication and a fresh test of its business model under the glare of public markets.

Looking Ahead: The Scenarios for Klarna

Analysts say Klarna’s Wall Street debut could play out in sharply different ways over the next two years.

In the best-case scenario, Klarna capitalizes on its global footprint and the steadily rising popularity of buy-now, pay-later (BNPL) services. With 111 million consumers already using its platform, the company could see transaction volumes grow, particularly if shoppers lean more heavily on installment financing to manage household budgets in an era of sticky inflation and slowing wage growth. Public market visibility may also give Klarna a lower cost of capital, enabling faster product innovation and expansion in the U.S.—its most competitive battleground.

In the worst-case path, BNPL remains under scrutiny from regulators in Europe and the United States, with concerns about consumer debt and transparency in repayment terms. Profitability pressures could re-emerge, particularly if interest rates stay higher for longer, driving up Klarna’s own funding costs. Competition is fierce, with U.S.-based Affirm commanding a $29 billion market valuation, nearly double Klarna’s, and focusing on big-ticket financing with longer zero-interest periods. A sluggish aftermarket for Klarna shares could also cool investor appetite for other fintech IPOs, dragging down valuations across the sector.

For now, Klarna’s leadership appears focused on resilience rather than breakneck expansion. “Right now, we’re more focusing on bringing additional value to our existing user base than the growth of the user base, because the growth has been very, very consistent,” Siemiatkowski told Reuters.

That strategy, some analysts suggest, could help the company weather regulatory challenges and stabilize earnings in its first quarters as a listed company.

Whether Klarna’s IPO will be remembered as the spark that reignited fintech listings—or as a high point before tougher scrutiny sets in—may depend less on its first-day pop than on how it navigates the next two years of life as a public company.