Stockholm based Fintech Klarna became the highest-valued private fintech in Europe after raising US$650 million in a funding round, at a post money valuation of $10.65 billion.
The funding round was led by Silver Lake, technology investing firm with more than $60 billion in combined assets under management, alongside GIC, a Singaporean sovereign wealth fund, as well as funds and accounts managed by BlackRock and HMI Capital.
Concurrently, Merian Chrysalis, TCV, Northzone and Bonnier have acquired shares from existing shareholders. They will join current investors such as Sequoia Capital, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group and Ant Group in supporting Klarna’s future growth.
The funding will help Klarna further invest in its shopping offering, continue to grow its global presence, and accelerate its momentum across all markets, especially in the US where the company is said to have more than 9 million consumers.
Sebastian Siemiatkowski, co-founder and CEO of Klarna:
“We are at a true inflection point in both retail and finance. The shift to online retail is now truly supercharged and there is a very tangible change in the behaviour of consumers who are now actively seeking services which offer convenience, flexibility and control in how they pay and an overall superior shopping experience. Klarna’s unique proposition, consumer preference and global retailer network will prove an excellent platform for further growth. The Klarna team is honoured to welcome such world class investors to support our mission to become the world’s favourite way to shop.”
Klarna offers a healthier, simpler and smarter alternative to credit cards and a broad range of services to purportedly more than 90 million consumers worldwide. This is at a time when consumers are actively turning away from revolving credit lines and inferior retail experiences towards services that better meet their needs.
It is worth noting that Klarna’s volume and revenue for the first half of 2020 grew 44% and 36% year-on-year to more than US$22 billion and US$466 million respectively.
