Klarna valued at $45.6bn after latest fundraise
Ellie Duncan | News
11 Jun 2021
Buy-now-pay-later fintech Klarna has raised $639 million in equity funding led by SoftBank’s Vision Fund 2, valuing the Swedish firm at $45.6 billion.
The latest funding round saw additional participation from existing investors Adit Ventures, Honeycomb Asset Management and WestCap Group, alongside other investors including Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group, Ant Group, Northzone, Singapore’s sovereign wealth fund GIC, as well as funds and accounts managed by BlackRock and HMI.
Klarna plans to use the proceeds to fuel its international expansion as it seeks to capture the global growth in retail.
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.”
He added: “I’m very proud of the investors who are supporting Klarna’s ambition to challenge these outdated models to empower consumers with fair, transparent, and convenient products to help them bank, shop and pay each day.”
Of the equity raised, 1% will go towards the GiveOne initiative established by Klarna earlier this year.
Yanni Pipilis, managing partner at SoftBank Investment Advisers, said: “Klarna’s growth is founded on a deep understanding of how the purchasing behaviours 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.”
In the US, more than 18 million US consumers use Klarna and it is now ‘live’ with more than 24 of the top 100 US retailers.
Earlier this week, Klarna launched in France, which is set to be the largest e-commerce market in Europe, worth over $185 billion by 2024, according to figures from MarketWatch.
