Klarna’s just-revealed $639 million spherical of funding brings it to a valuation to $45.6 billion, which the corporate stated will assist it develop additional whereas additionally supporting a keystone sustainability program, the GiveOne initiative.
GiveOne was established by Klarna earlier this yr, and earmarks 1 % of fairness raised to be “directed to initiatives supporting planet health,” the corporate stated. Its most up-to-date spherical of funding was led by traders in different corporations reminiscent of SpaceX, Spotify, Airbnb, GoPro and Lyft.
Klarna stated the spherical was led by GentleBank’s Vision Fund 2 “with additional participation from existing investors Adit Ventures, Honeycomb Asset Management and WestCap Group, to support international expansion and further capture global retail growth.” Other traders embody Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group, Ant Group, Northzone and GIC (which is Singapore’s sovereign wealth fund), in addition to funds and accounts managed by BlackRock and HMI.
Klarna stated its present valuation makes it “the highest-valued private fintech in Europe and the second-highest worldwide.”
In its assertion, the corporate stated its platform permits buyers to “shop, pay and bank in a smarter way” and is designed round their lives, fairly than round “the requirements of the traditional payments and banking industry.”
“The ongoing structural shift of consumers turning away from revolving credit lines where they incur interest or fees to debit and simultaneously seeking superior retail experiences means Klarna’s healthier, more transparent and convenient alternatives, which put consumers in control are closely aligned to evolving global consumer preferences and drive global growth,” Klarna said.
Sebastian Siemiatkowski, Klarna’s founder and chief government officer, stated shoppers “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 “I’m very proud of the investors who are supporting Klarna’s ambition to challenge these outdated models to empower consumers with fair, transparent, and convenient products to help them bank, shop and pay each day.”
Yanni Pipilis, managing associate for GentleBank Investment Advisers, stated Klarna’s progress “is founded on a deep understanding of how the purchasing behaviors of consumers are changing, an evolution which we believe is accelerating.”