Klarna valued at $10.65 billion after blockbuster funding round
Swedish buy now, pay later specialist Klarna has raised $650 million in an equity funding round, at a post money valuation of $10.65 billion.
This makes it the highest valued private FinTech in Europe and the fourth highest worldwide.
The round was led by Silver Lake Partners, alongside GIC, Singapore’s sovereign wealth fund, as well as BlackRock and HMI Capital.
Merian Chrysalis, TCV, Northzone and Bonnier have also 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.
The funding will help Klarna, which is a regulated bank, further invest in its shopping offering, grow its global presence and accelerate its momentum across all markets, especially in the US where the company now has more than nine million consumers.
Sebastian Siemiatkowski, Co-founder and CEO, Klarna, says: “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.”
“Our 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.”
Egon Durban, Co-CEO and Managing Partner, and Jonathan Durham, MD, Silver Lake, comment: “Klarna is one of the most disruptive and promising FinTech companies in the world, redefining the e-commerce experience for millions of consumers and global retailers, just as e-commerce growth is accelerating worldwide and rapidly shifting to mobile.”
“Its retail partners benefit from incremental traffic and dramatically improved customer conversion. Consumers love Klarna for its differentiated app-based shopping experience and for its flexible and transparent payment options.”