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Klarna suspends plans to launch the much-anticipated $15 billion New York IPO due to market turbulence, sparking the announcement of widespread tariffs by US President Donald Trump.
Sweden’s “buy now, pay later” FinTech was planning to launch a so-called IPO roadshow with investors next week, but the sale of its US stock has put the plan on ice, said someone familiar with the plan.
Klarna applied for an IPO with the U.S. Securities and Exchange Commission last month, but it didn’t date the float, but usually starts trading with the company about a week after roadshow begins.
Those familiar with Klarna’s strategy said the company has no regulatory obligations floating within a certain time frame, and the list could be made in a few weeks.
Klarna’s decision to stop the IPO process was first reported by the Wall Street Journal. The planned list was eagerly anticipated by fintech investors to view it as a positive sector.
Investment in FinTech has slowed since its peak in 2021. This prevents the losses from occurring as higher interest rates prevent supporters from suffering losses.
Klarna has become the child of the sector’s boom and bust cycle posters as it collided with $6.7 billion just a year from $46 billion in 2021.
FinTech said last month it returned to profitability in 2024, reporting a net profit of $21 million from a loss of $244 million last year. Revenues rose almost 24% to $2.8 billion.
Klarna offers short-term, interest-free loans that are commonly offered to online consumers at checkout. In recent years, it has been actively expanding in the US, signing partnerships with merchants such as Walmart, Apple and Doordash.
Global markets have skyrocketed downwards since Trump announced sweeping fees to US trading partners this week. The losses were extended on Friday as China announced retaliation measures and investors were scared of the outlook for a full-scale world trade war.
After Beijing’s announcement, the S&P 500 had fallen 4.2%, while the Stoxx 600 across Europe traded 4.8% lower.
Klarna’s US-listed rival stock shares have fallen by more than 45% since the start of the year.
Klarna declined to comment.
