Klarna has become the highest-valued private FinTech in Europe and the second-highest worldwide. The Swedish buy now, pay later behemoth and upstart bank announced on Monday secured $1 billion USD in an equity funding round to accelerate international expansion and further capture global retail growth.
The new funding values Klarna at $31 billion at a post-money valuation.
The funding was confirmed today by the company in a statement after it was leaked to the media.
Klarna enables consumers to shop, pay and bank in a smarter way, designed to fit the lives they lead, not the requirements of the traditional payments and banking industry.
The ongoing structural shift of consumers actively moving away from revolving credit lines to debit means Klarna’s healthier and simpler alternatives, which put consumers in control of their finances, are closely aligned to evolving global consumer preferences and drive global growth.
In 2020, the Klarna app was consistently ranked among the Top 10 app downloads in the United States, proving Klarna’s ability to elevate the mobile shopping experience.
Consumers can browse and shop at any brand online with Klarna payment options, track spending and available balances, add favorite items to wishlists, access tailored discounts, receive price-drop notifications, track deliveries intelligently and join Klarna’s new loyalty program, Vibe.
Consumers now expect the convenience and flexibility of the online experience everywhere. Klarna’s global platform, supported by it’s app, makes this transition between channels seamless for consumers, always delivering a personalised and engaging service.
With global retail sales expected to reach $27 trillion by 2022, Klarna is uniquely placed to meet the continued accelerated demand both online and in-store.
Klarna’s more than 250,000+ retail partners including Macys, Etsy, Sephora, Ralph Lauren and Urban Outfitters are offering our services across channels.
In all, this is reflected in the continued strong business results for Klarna: volume and revenue for 2020 grew 46% and 40% year-on-year to more than $53 billion and $1 billion respectively.
“At Klarna, we solve problems – that is the heart of what we do for both consumers and retailers. Consumers want transparent products to help them bank, shop and pay that reflect the way they live their lives, not just outdated traditional models,” Sebastian Siemiatkowski, co-founder and CEO of Klarna.
“Each and everyone of us at Klarna will continue to work hard on this, but it is also time for us, with our culture of change, disruption and innovation, to focus on tackling bigger, more complex issues. I believe our industry has a responsibility to help in some way solve global sustainability issues and I hope others will join Klarna in our ambition.”
The FinTech has been backed by Sequoia Capital since 2010. Recent investors include Dragoneer, Bestseller Group, Permira, Visa, Atomico, Ant Group, Commonwealth Bank of Australia, Silver Lake, HMI Capital, TCV, Northzone, GIC (Singapore’s sovereign wealth fund) and funds and accounts managed by BlackRock.