Swedish fintech giant Klarna has put its U.S. IPO plans on hold as President Donald Trump’s sweeping tariffs shake global markets, according to sources familiar with the matter.
Klarna’s listing was expected to be a major boost for the struggling IPO market in 2025. The pause could delay momentum for other firms considering going public.
Sources say Klarna may revisit its IPO plans if market conditions improve. The company was reportedly targeting over $1 billion in funding at a valuation exceeding $15 billion.
The U.S. IPO landscape had shown signs of recovery, but some recent debuts struggled. Shares of LNG exporter Venture Global have dropped since its January listing. AI firm CoreWeave dipped on its first trading day but has since rebounded.
Trump’s announcement of broad new tariffs has heightened fears of a trade war, sending stocks into a tailspin and pushing the Nasdaq closer to a bear market.
“This kind of market instability naturally makes any company, regardless of sector, hit the brakes on near-term IPO plans,” said Lukas Muehlbauer, analyst at IPOX.
Klarna, which had a $45.6 billion valuation at its peak in 2021, had 93 million active users across 26 countries as of late 2024. The surge in online spending that once fueled its growth has since slowed.According to the Wall Street Journal, Klarna has postponed marketing efforts for its shares, which were initially set for this week. The company declined to comment.