Swedish fintech giant Klarna has postponed its highly anticipated initial public offering in the United States as markets reel from President Donald Trump’s sweeping new tariff announcements, according to sources familiar with the matter.
The buy-now-pay-later company had been preparing to begin marketing its shares to investors this week, with ambitions to raise over $1 billion at a valuation exceeding $15 billion, but abruptly changed course amid escalating trade tensions and market volatility.
Klarna’s decision represents a significant setback for the gradually recovering IPO market, as many industry observers viewed the company’s public debut as a potential catalyst that might encourage other technology firms to follow suit. The postponement comes during what has been an uneven year for new public offerings, with some recent market entrants receiving lukewarm receptions from investors.
“This kind of market instability naturally makes any company, regardless of sector, hit the brakes on near-term IPO plans,” said Lukas Muehlbauer, research analyst at IPOX, commenting on the general market environment.
Wall Street has experienced sharp declines this week as fears of a trade war intensified following Trump’s announcement of substantial new tariffs. The market turbulence has pushed the Nasdaq toward bear market territory, with technology stocks particularly hard hit.
Klarna is not alone in its caution. Ticket marketplace StubHub has also paused its IPO plans that had been scheduled to launch next week. Both companies had filed their public documents with the Securities and Exchange Commission in March and had been hoping to raise at least $1 billion each in their public market debuts.
The Swedish fintech company, which operates in 26 countries and reported 93 million active customers at the end of 2024, has seen its valuation fluctuate significantly in recent years. After reaching a peak valuation of $45.6 billion in 2021 during the pandemic-driven e-commerce boom, Klarna’s private market value has since moderated considerably as online spending patterns normalized.
Sources indicate that Klarna may reconsider its IPO plans should market conditions stabilize, though no specific timeline has been established. The Financial Times reported that the IPO market had begun showing signs of life before the recent tariff announcements forced companies to reconsider.
Klarna did not immediately respond to requests for comment.