Sweden’s Klarna Targets up to $14 Billion Valuation in Long-Awaited US IPO

(Reuters) -Sequoia Capital-backed Klarna said on Tuesday it was aiming for a U.S. listing valuing the fintech at up to $14 billion, moving it closer to its long-awaited market debut as investor appetite in high-growth tech stocks revives after a years-long dry spell.

Companies that postponed going public are returning to test investor interest, supported by steadier markets and improving confidence.

Several tech listings, including neo-bank Chime and stablecoin issuer Circle , have attracted solid demand, signaling a cautious revival in activity.

The buy now, pay later lender and some of its investors plan to sell 34.3 million shares in the IPO at prices expected to be between $35 and $37, aiming to raise up to $1.27 billion.

Fintechs such as Klarna are gaining market share from traditional banks by offering faster, more flexible payment options and digital-first services that appeal to younger consumers, with analysts expecting the growth of BNPL and similar products to accelerate as e-commerce expands worldwide.

BNPL services let shoppers split purchases into smaller, interest-free instalments over weeks or months, instead of paying upfront.

The payments sector has also so far largely escaped the impact of tariffs, with consumer spending showing resilience across major economies.

Still, the BNPL model faces risks in a high-inflation environment, with potential credit losses and limited tracking of users’ credit profiles raising concerns about profitability and long-term consumer resilience.