Klarna raises $639m at $45.6 billion valuation
Klarna has raised $639 million in a funding round led by SoftBank’s Vision Fund 2 that values the buy now, pay later juggernaut at $45.6 billion.
The funding comes just three months after a $1 billion round at a $31 billion valuation. The latest post-money valuation sees Swedish giant Klarna remain the highest-valued private fintech in Europe and the second-highest worldwide, after Stripe.
Available direct to consumers via the company’s shopping app, Klarna is used by tens of millions of customers worldwide as well as at over 250,000 retailers globally.
The firm reported over $18.9 billion gross merchandise value in the first quarter, thanks in large part to “exceptional” growth in the US. Klarna is now live with 24 of the top 100 US retailers, more than any of its competitors.
The new money will be used to continue international expansion. The company is already live in 17 markets – including France, where it launched this week.
Sebastian Siemiatkowski, CEO, Klarna, says: “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.”
As part of the GiveOne initiative established by Klarna earlier this year, one per cent of the equity raised will be directed to initiatives supporting planet health.