Recent tariff announcements by President Trump have sent ripples through the global financial markets, causing several high-profile fintech companies to pause their public offering plans.
eToro Delays Roadshow
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Klarna Has Paused U.S. Listing
Swedish fintech giant Klarna has paused its plans for a U.S. initial public offering. According to sources familiar with the situation, the company is reassessing market conditions in light of President Trump's sweeping tariffs that have rattled global markets.
Klarna was aiming to raise more than $1 billion at a valuation exceeding $15 billion, according to media reports. The company had been scheduled to begin marketing its shares this week, as first reported by The Wall Street Journal, but has now postponed these plans.
The payment provider had filed for an IPO on the New York Stock Exchange under the ticker symbol "KLAR" earlier this year. The company's listing was highly anticipated in the Buy-Now-Pay-Later (BNPL) sector, positioning Klarna to become the first major BNPL provider to go public in the United States.
The Swedish fintech boasts an impressive global footprint with 93 million active customers across 26 countries as of the end of 2024, according to its IPO filing. While Klarna has not immediately responded to requests for comment on the delay, the decision comes at a critical moment for the company's valuation journey.
Klarna's valuation has seen significant fluctuations in recent years. After soaring to a peak of $45.6 billion in 2021 during the pandemic-driven surge in online spending, its valuation has since moderated as e-commerce growth normalized. The company had recently achieved profitability after implementing cost-cutting measures, making its IPO timing particularly significant for demonstrating the viability of the BNPL business model.
Broader Impact on IPO Recovery
These delays complicate what has already been an uneven recovery for the U.S. IPO market in 2025. While hopes for a stronger market were high at the beginning of the year, many new market entrants have received muted receptions from investors.
The timing is particularly challenging as U.S. stocks fell sharply for a second straight session on Friday, pushing the Nasdaq toward bear market territory.
Sources indicate that Klarna may reassess its plans if market conditions stabilize in the coming months, suggesting that these delays might be temporary rather than permanent cancellations.
What's Next?
As financial markets adjust to the new tariff landscape, potential IPO candidates are likely to take a more cautious approach, waiting for clearer signals before committing to public offerings. This period of reassessment could extend well into the second half of 2025 if market volatility persists.