Klarna, a leading global payments provider, confirms it has raised $639m in funding at a $45.6bn post-money valuation.
The round was led by SoftBank's Vision Fund 2, with additional participation from existing investors Adit Ventures, Honeycomb Asset Management, and WestCap Group, to support international expansion and further capture global retail growth.
Sebastian Siemiatkowski, Klarna Founder and CEO said: "Consumers continue to reject interest-and fee-laden revolving credit and are moving toward debit while simultaneously seeking retail experiences that better meet their needs. Klarna's more transparent and convenient alternatives align with evolving global consumer preferences and drive worldwide growth. I'm very proud of the investors who are supporting Klarna's ambition to challenge these outdated models to empower consumers with fair, transparent, and convenient products to help them bank, shop and pay each day."
The new valuation represents a 47% increase over Klarna’s valuation of $31bn in early March, when it raised $1bn, and a 330% increase over its $10.6bn valuation last September. It makes Klarna second in value only to Stripe, which is worth $95bn.
"Klarna's growth is founded on a deep understanding of how the purchasing behaviors of consumers are changing, an evolution which we believe is accelerating. Klarna has already successfully expanded into the US and we are excited to continue supporting the team in bringing the next generation of financial services to new markets worldwide." said Yanni Pipilis, managing partner for SoftBank Investment Advisers.
Making online payments simpler
Founded in 2005 in Stockholm, Sweden by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, Klarna has the aim of making it easier for people to shop online. It is an e-commerce payment solutions platform for merchants and shoppers and is also known for its “buy now, pay later” model – offering shoppers interest-free financing on retail purchases over a period of instalments.
Additionally, in the app, consumers can browse and shop at any brand online with Klarna payment options, allowing them to pay immediately or later, manage spending and available balances, add favourite items to collections, initiate refunds, access tailored discounts, receive price-drop notifications, track deliveries intelligently and join Klarna's loyalty programme, Vibe.
Klarna currently has 90 million active consumers across more than 250,000 merchants in 17 countries. By 2030 the company aims to reduce company emissions by 50%, and from 2021, it will make annual financial contributions to high-impact climate projects, including carbon removal, blue carbon initiatives, reforestation and forest protection, and high-impact emission reduction projects.