Klarna Raises $1.4B in NYSE IPO, Sequoia Capital Emerges as Largest Beneficiary

Klarna’s IPO Raises $1.4 Billion, Highlights Sequoia Capital’s Dominant Stake

After two decades of development, Swedish fintech Klarna successfully launched its initial public offering (IPO) on the New York Stock Exchange (NYSE) on Wednesday, raising $1.4 billion. The offering primarily facilitated liquidity for existing investors rather than injecting fresh capital into the company.

Klarna priced its shares at $40, exceeding the anticipated range of $35 to $37, resulting in an opening valuation of approximately $15 billion. Shares surged to open at $52 but moderated to around $46 by midday trading.

Of the 34.3 million shares sold, only about 5 million were newly issued by Klarna itself; the remainder came from existing shareholders including Sequoia Capital, Klarna’s largest investor. Other sellers included entities affiliated with Dutch billionaire Anders Holch Povlsen, Silver Lake, and BlackRock. Despite these partial sales, all major shareholders retained the majority of their holdings.

This approach mirrors other recent tech IPOs, such as Figma’s, where existing investors sell shares to meet market demand and attract institutional investors, thereby supporting a more accurate and potentially higher valuation at debut.

Notably, Klarna’s co-founder and CEO Sebastian Siemiatkowski did not divest any shares during the IPO. His stake was valued at over $1 billion based on the IPO price, representing approximately 7.5% ownership. Another co-founder, Victor Jacobsson, who left the company in 2012, sold 1.1 million shares but still holds over 8%. Niklas Adalberth, also a co-founder, retains just under 3 million shares.

Sequoia Capital’s involvement dates back to 2010 when Michael Moritz made Klarna’s initial investment on behalf of the firm. Moritz remained chairman until 2023, and despite some boardroom tensions when Sequoia added a new member in 2024, these issues were resolved with Andrew Reed joining Klarna’s board.

Reflecting on the IPO, Siemiatkowski remarked, “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, “Going public in New York is huge. 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.”

While Klarna’s $1.4 billion raise is substantial, it does not eclipse the largest IPO of 2025 to date, which belongs to CoreWeave, having raised $1.5 billion in June.