How to Buy Klarna Stock Before the IPO

Klarna filed confidentially for a US IPO in late 2024, and the “Buy Now Pay Later” pioneer could go public as early as the first half of 2025. If you’ve used Klarna to split a purchase into four payments, you already know the product—now you want to own the company.

The short answer: most retail investors cannot buy Klarna stock directly. The company remains private, and secondary market access requires accredited investor status with minimums starting at $25,000. But here’s what makes Klarna different from other pre-IPO opportunities: this stock has already crashed 85%—from a $46 billion peak to $6.7 billion—and recovered to roughly $15 billion. That valuation rollercoaster should inform how you think about “getting in early.”

This guide breaks down exactly who can access Klarna shares today, through which platforms, at what cost—and what alternatives exist if you don’t qualify or prefer liquidity.

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Quick Summary

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What Is Klarna?

Klarna is a Swedish fintech company that pioneered the “Buy Now Pay Later” (BNPL) model. Founded in 2005 by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, Klarna lets consumers split purchases into interest-free installments—typically four payments over six weeks.

The core product: When you checkout at a Klarna merchant, you can choose to pay immediately, pay later (in 30 days), or split into four payments. Klarna pays the merchant upfront and assumes the credit risk. The merchant pays Klarna a fee (typically 3-6% of the transaction), and consumers pay nothing if they make payments on time.

Scale today:

• 150+ million consumers globally
• 500,000+ merchant partners
• Available in 45+ countries
• ~$3.5 billion in annual revenue

Key investors: Sequoia Capital, SoftBank, DST Global, TCV, and Atomico have collectively invested $4.5 billion into Klarna across multiple funding rounds.

Why investors are interested: Klarna sits at the intersection of fintech, e-commerce, and consumer credit—three massive markets. The company has built a two-sided network (consumers and merchants) that creates switching costs on both sides. And unlike many fintech startups, Klarna is actually a licensed bank in Europe, giving it regulatory credibility and access to low-cost deposits.

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Can You Buy Klarna Stock?

Direct answer: Not easily. Klarna is a private company, meaning its shares don’t trade on any public exchange. You cannot open a brokerage account and buy KLARNA the way you’d buy Apple or Amazon.

However, there are three paths to Klarna exposure:

1. Secondary markets (accredited investors only) — Platforms like EquityZen facilitate transactions in private company shares between existing shareholders and new investors.

2. Public BNPL competitors (anyone) — Companies like Affirm, Block (which owns Afterpay), and PayPal offer direct exposure to the BNPL sector.

3. Wait for the IPO (anyone) — Klarna has filed confidentially for a US listing expected in 2025.

The viability of each path depends on your investor status, capital, and risk tolerance.

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Accredited Investor Requirements

To access Klarna shares on secondary markets, you must qualify as an accredited investor under SEC rules. This isn’t a Klarna requirement—it’s federal securities law.

You qualify if you meet ANY of these criteria:

Income Test:

• $200,000+ individual income for each of the past two years, OR
• $300,000+ combined income with spouse/partner
• Plus reasonable expectation of the same income this year

Net Worth Test:

• $1,000,000+ net worth, excluding your primary residence

Professional Credentials:

• Series 7, 65, or 82 licenses
• Certain other professional certifications

Reality Check: Roughly 13% of U.S. households qualify as accredited investors. If you don’t meet these thresholds, skip ahead to the “Alternatives for Retail Investors” section—there are legitimate ways to get BNPL exposure without accreditation.

Verification process: Secondary market platforms will require documentation—typically tax returns, W-2s, brokerage statements, or third-party verification through services like Parallel Markets or VerifyInvestor.

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How to Invest in Klarna (If Accredited)

If you qualify as an accredited investor, here are the platforms where Klarna shares may be available:

Secondary Market Platforms

EquityZen

• Minimum: $25,000+
• Fees: Typically 5-10% of transaction
• Process: Browse available offerings, commit capital, complete accreditation verification
• Availability: EquityZen has historically listed Klarna shares; availability varies based on seller interest
• Timeline: Transactions can take 2-8 weeks to complete

Forge Global

• Minimum: $25,000+
• Fees: Similar to EquityZen
• Process: Institutional-grade platform, may have stricter requirements
• Availability: Check current listings; Klarna availability fluctuates

Hiive

• Minimum: $10,000+
• Fees: 5-8% typical
• Process: Newer platform with competitive pricing
• Availability: Limited information on current Klarna inventory

How Secondary Markets Work

When you buy Klarna shares on a secondary market, you’re typically purchasing from:

• Current or former employees who received equity compensation
• Early investors looking to take profits or rebalance
• Funds that need to return capital to their LPs

The platform acts as an intermediary, handling:

• Seller verification and share authentication
• Buyer accreditation verification
• Legal documentation (purchase agreements, transfer docs)
• Coordination with Klarna’s transfer agent (companies must approve share transfers)

Important: Klarna, like most private companies, has Right of First Refusal (ROFR) on share transfers. This means the company can choose to buy shares at the agreed price instead of allowing the transfer to proceed. This can add weeks to transaction timelines and occasionally block deals entirely.

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Alternatives for Retail Investors

If you’re not accredited—or prefer liquid, publicly traded investments—here are your options for BNPL sector exposure:

Public BNPL Competitors

Affirm Holdings (AFRM)

• What it is: The largest US-based BNPL company, founded by PayPal co-founder Max Levchin
• Market cap: ~$25 billion
• Why it’s relevant: Affirm is Klarna’s closest public comparable. If you believe in BNPL, Affirm gives you direct exposure.
• The catch: Affirm trades at premium valuations (100+ P/E) and has yet to achieve consistent profitability

Block, Inc. (SQ)

• What it is: The company formerly known as Square, which acquired Afterpay (Klarna’s Australian competitor) for $29 billion in 2022
• Market cap: ~$43 billion
• Why it’s relevant: Afterpay is now integrated into Block’s Cash App and Square ecosystem
• The catch: BNPL is a small part of Block’s overall business; you’re mostly buying the Square/Cash App ecosystem

PayPal Holdings (PYPL)

• What it is: The payments giant that launched “Pay in 4” to compete with Klarna
• Market cap: ~$57 billion
• Why it’s relevant: PayPal has massive distribution (400M+ accounts) and is aggressively growing BNPL
• The catch: BNPL is a small percentage of PayPal’s revenue; this is a diversified payments bet, not a pure BNPL play

BNPL Competitor Comparison

Fintech ETFs

If you want broader fintech exposure that may include Klarna post-IPO:

Global X FinTech ETF (FINX)

• Holds public fintech companies
• May add Klarna after IPO
• Expense ratio: 0.68%

ETFMG Prime Mobile Payments ETF (IPAY)

• Focused on digital payments
• Includes PayPal, Block, and payment processors
• Expense ratio: 0.75%

ARK Fintech Innovation ETF (ARKF)

• Actively managed fintech fund
• Known for adding high-growth names
• Expense ratio: 0.75%

Wait for the IPO

Klarna filed a confidential S-1 registration with the SEC in late 2024. Here’s what that means:

• Public filing: Klarna will make its S-1 public roughly 15 days before the roadshow begins
• Expected timeline: Most analysts expect a Q1 or Q2 2025 IPO, market conditions permitting
• Access at IPO: Retail investors can typically buy shares on the first day of trading, though IPO allocations go to institutional investors

The IPO strategy: If you’re patient, waiting for the IPO gives you:

• Liquidity from day one
• Full financial disclosure (audited financials, risk factors)
• Market-determined pricing (not private negotiation)

The downside: You won’t get “pre-IPO” pricing. But given Klarna’s valuation history, that might be a feature, not a bug.

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Klarna’s Valuation History

Klarna’s valuation trajectory is a case study in private market volatility:

What happened in 2022?

Klarna’s 85% valuation collapse wasn’t unique—it reflected a broader repricing of growth stocks and fintech companies as interest rates rose. But the magnitude was striking:

• Rising rates: Higher interest rates increased Klarna’s cost of capital and reduced the present value of future cash flows
• Credit concerns: BNPL companies faced scrutiny over consumer default rates
• Growth slowdown: E-commerce growth normalized post-pandemic
• Profitability pressure: Investors shifted from “growth at all costs” to “path to profitability”

The recovery story:

Since the 2022 low, Klarna has:

• Cut roughly 10% of its workforce
• Achieved adjusted EBITDA profitability (~$400M in 2023)
• Grown revenue to ~$3.5 billion
• Expanded its US presence significantly

The ~$15 billion current valuation represents a 67% discount from the 2021 peak—which could be an opportunity or a warning, depending on your perspective.

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Risks of Pre-IPO Klarna Investment

Before you pursue Klarna shares through any channel, understand what you’re signing up for:

Valuation Risk: It Already Crashed 85%

Klarna’s valuation history proves that private market prices can be wildly disconnected from reality. Investors who bought at the $46 billion peak in 2021 saw their investment lose 85% of its value within 12 months—with no ability to sell.

If Klarna IPOs at $20 billion and you bought secondary shares at a $15 billion valuation, you’d see a 33% gain. But if it IPOs at $10 billion (still possible in a risk-off market), you’re looking at a 33% loss.

Regulatory Risk: CFPB Is Coming for BNPL

The Consumer Financial Protection Bureau (CFPB) has signaled it will regulate BNPL products like credit cards. This means:

• Mandatory credit reporting: BNPL usage will appear on credit reports
• Disclosure requirements: Standardized fee and interest disclosures
• Dispute resolution: Credit card-style consumer protections

These regulations could reduce BNPL adoption (some consumers use it to avoid credit reporting) and increase compliance costs.

Competitive Risk: Everyone Wants In

Klarna faces competition from:

• Pure-play BNPL: Affirm, Afterpay (Block), Zip
• Big tech: Apple Pay Later launched in 2023
• Traditional finance: Banks like Chase and Citi offer installment products
• PayPal: Pay in 4 has massive distribution

The BNPL market is growing, but so is competition. Klarna’s moat depends on its merchant network and consumer brand—both of which can erode.

Liquidity Risk: You Can’t Sell When You Want

Secondary market shares are illiquid. If you need to exit:

• You must find a buyer on the same (or another) platform
• Transactions take weeks or months
• You may have to accept significant discounts
• Company ROFR can block or delay sales

Treat any pre-IPO investment as locked capital until the IPO.

Credit Risk: BNPL Is Consumer Lending

At its core, Klarna is a consumer lender. In an economic downturn:

• Default rates increase
• Credit losses rise
• Growth slows as consumers pull back

Klarna’s licensed bank status provides some advantages (access to deposits, regulatory credibility), but it doesn’t eliminate credit risk.

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When Will Klarna Go Public?

What we know:

• Klarna filed a confidential S-1 with the SEC in late 2024
• The company has publicly stated its intention to IPO in the US
• Expected exchange: NYSE or NASDAQ

Timeline speculation:

• Q1 2025: Public S-1 filing, roadshow preparation
• Q2 2025: Most likely IPO window (assuming favorable market conditions)
• Risk factor: Market volatility, regulatory delays, or company performance could push the timeline

Signs to watch:

• Public S-1 filing (required ~15 days before roadshow)
• Executive interviews discussing IPO readiness
• Analyst reports with valuation ranges
• Comparison to Affirm’s trading multiples

Historical context: Affirm went public in January 2021 at a $12 billion valuation and immediately doubled. But Affirm also peaked above $45 billion before crashing below $5 billion. BNPL IPOs can be volatile.

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The Bottom Line

Klarna is one of the most anticipated fintech IPOs of 2025—but “anticipated” doesn’t mean “accessible” or “safe.”

For accredited investors: Secondary market access exists through platforms like EquityZen, but you’re buying into a company that’s already experienced an 85% valuation collapse. The $15 billion current estimate is a recovery price, not a ground-floor opportunity. Make sure you understand the liquidity constraints and ROFR risks.

For retail investors: Your best options are public BNPL competitors (Affirm for pure-play exposure, Block or PayPal for diversified bets) or waiting for the IPO. Given Klarna’s valuation volatility, waiting for public market pricing and liquidity may be the smarter play.

The reality check: “Getting in before the IPO” sounds exciting, but the investors who bought Klarna at its 2021 peak are still underwater. The opportunity isn’t in buying early—it’s in buying at the right price.

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FAQ

Can you buy Klarna stock?

Not on public markets. Klarna is a private company. Accredited investors can potentially access shares through secondary market platforms like EquityZen with $25,000+ minimums. Retail investors must wait for the IPO or buy public competitors like Affirm.

Is Klarna publicly traded?

No. Klarna filed confidentially for a US IPO in late 2024 and is expected to go public in early-to-mid 2025 on the NYSE or NASDAQ.

How much is Klarna worth?

Klarna’s current estimated valuation is approximately $15 billion, based on recent private market transactions. This is down from a peak of $45.6 billion in June 2021 and up from a low of $6.7 billion in July 2022.

When will Klarna IPO?

Klarna is expected to go public in the first half of 2025, though the exact timing depends on market conditions and regulatory approvals. The company filed a confidential S-1 registration in late 2024.

How can I invest in BNPL as a retail investor?

Retail investors can buy shares of public BNPL companies: Affirm (AFRM) for pure-play exposure, Block (SQ) which owns Afterpay, or PayPal (PYPL) which offers Pay in 4. Fintech ETFs like FINX, IPAY, or ARKF provide broader sector exposure.

What is the minimum investment for Klarna pre-IPO shares?

Secondary market platforms typically require $10,000-$25,000 minimums for pre-IPO investments, plus accredited investor status. EquityZen’s typical minimum is $25,000.

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Sources

• Bloomberg: “Klarna Files Confidentially for US IPO” (November 2024)
• SEC: Accredited Investor Definition, Rule 501 of Regulation D
• EquityZen: Klarna company profile and investment page
• Yahoo Finance: AFRM, SQ, PYPL stock data
• Crunchbase: Klarna funding history and company profile
• Reuters: Klarna valuation history and IPO coverage
• CFPB: Buy Now Pay Later regulatory guidance