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Klarna completes USD 650mn financing round
Posted on Tuesday, 15 September 2020 10:03
Klarna has raised USD 650.00 million in an equity funding round that gives the Swedish online financial services company a post money valuation of USD 10.65 billion.
Silver Lake led the financing, alongside GIC BlackRock and HMI Capital, which ranks the payment provider as “the highest-valued private fintech in Europe” and as “the 4th highest worldwide”.
Concurrently, Merian Chrysalis, TCV, Northzone and Bonnier bought shares from existing stockholders to join existing investors Sequoia Capital, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group and Ant Group.
Klarna noted the funding will help it “further invest in its unique shopping offering, continue to grow its global presence, and accelerate its strong momentum across all markets”.
This would be particularly true in the US, “where the company is growing particularly rapidly and now has more than 9.00 million consumers”.
Founded in 2005, Klarna offers an alternative to credit cards; its direct to consumer app lets users shop at any store or brand online with instalment payment options.
The group’s platform has more than 12.00 million monthly active users worldwide, with 55,000 daily downloads, which has outpaced the nearest competitor with almost 3x as many downloads over the last year, according to the statement.
Consumers can wishlist their favourite items, access discounts, set up price-drop notifications and track spending and deliveries intelligently.
The app also features a first buy now, pay later shopper loyalty program, Vibe, which rewards consumers who pay on time, to encourage responsible spending.
In the context of the current accelerated switch to online retail and evolving consumer preferences, Klarna has seen a surge in demand.
The group has added more than 35,000 new retailers during the first half of 2020 to its network of more than 200,000 retail partners, including Sephora, Groupon, SHEIN, Charlotte Tilbury, Vans, the North Face, Ted Baker, Timberland and Ralph Lauren.
Klarna’s volume and revenue for the first half of 2020 grew to more than USD 22.00 billion and USD 466.0 million, respectively.
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