The Swedish global payments and shopping service, Klarna, have today announced it has raised $650 million in an equity funding round, at a post money valuation of $10.65 billion, which ranks Klarna as the highest-valued private fintech in Europe and now the 4th highest worldwide.
The funding round is led by Silver Lake, the global leader in technology investing, with more than $60 billion in combined assets under management, alongside GIC, Singapore’s sovereign wealth fund, as well as funds and accounts managed by BlackRock and HMI Capital.
Concurrently, Merian Chrysalis, TCV, Northzone and Bonnier have 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 in supporting Klarna’s future growth.
The funding will help Klarna further invest in its unique shopping offering, continue to grow its global presence, and accelerate its strong momentum across all markets, especially in the US where the company is growing particularly rapidly and now has more than 9 million consumers.
The uniqueness of Klarna’s offer; providing a healthier, simpler and smarter alternative to credit cards and a broad range of services to enable a superior shopping journey, continues to drive rapid consumer adoption and loyalty with more than 90 million consumers worldwide.
This is at a time when consumers are actively turning away from revolving credit lines and inferior retail experiences towards services that better meet their needs.
Klarna’s direct to consumer app, which enables users to shop at any store or brand online with instalment payment options, is strongly resonating as consumers have become more focused on convenience, value and control.
The app has more than 12 million monthly active users worldwide, with 55 000 daily downloads, significantly outpacing its nearest competitor with almost 3 times as many downloads over the last year.
In the app, consumers can also now wishlist their favourite items, access unique discounts, set up price-drop notifications and track spending and deliveries intelligently.
The app also features the world’s first buy now, pay later shopper loyalty programme, Vibe, which rewards consumers who pay on time, to encourage responsible spending. Vibe is currently available to consumers in the US and will soon be launched in additional markets.
In the context of the current accelerated switch to online retail and evolving consumer preferences, Klarna has seen a surge in demand, adding more than 35 000 new retailers during the first half of 2020 to its network of more than 200 000 retail partners including Sephora, Groupon, SHEIN, Charlotte Tilbury, Vans, The North Face, Taed Baker, Timberland, and Ralph Lauren.
Klarna is the pay later partner of choice for the top 100 highest grossing merchants in the US and will soon go live with more ahead of the busiest shopping season.
A recent McKinsey & Company consumer survey found that more than 75 percent of consumers have tried new brands, places to shop or methods of shopping during COVID-19 and that 82 percent of those who have tried a new digital shopping method intend to continue using it even after the crisis ends.
This is reflected in strong business results for Klarna: volume and revenue for the first half of 2020 grew 44 percent and 36 percent year-on-year to more than $22 billion and $466 million respectively.
We believe that information should be free and will therefore never put up a paywall.
If you like reading our reports about the Scandinavian business scene and would like to donate towards the upkeep of the site, we would be very grateful. Click here to donate.
Startups | 🕐 05. Oct. 2020
Business | 🕐 02. Oct. 2020
Business | 🕐 01. Oct. 2020
Game Development | 🕐 18. Feb. 2020
Tech | 🕐 19. Jun. 2020
Business | 🕐 29. May. 2020
Startups | 🕐 17. Apr. 2020
Startups | 🕐 13. Apr. 2020
Startups | 🕐 27. Apr. 2020