Klarna claims $45bn valuation after funding round

Klarna, the Swedish “buy now and pay later” payments firm, has announced a new equity funding of $639 million.

Klarna said the round was led by SoftBank’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.”

Klarna’s other investors include Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group, Ant Group, Northzone, Singapore sovereign wealth fund GIC – as well as funds and accounts managed by BlackRock and HMI.

“The post-money valuation of Klarna is USD 45.6 billion and remains the highest-valued private fintech in Europe and the second-highest worldwide,” said Klarna.

Klarna founder and CEO Sebastian Siemiatkowski 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.

“I’m very proud of the investors who are supporting Klarna’s ambition to challenge these outdated models to empower consumers with fair, transparent, and convenient products to help them bank, shop and pay each day.”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 partner for SoftBank Investment Advisers, said: “Klarna’s growth is founded on a deep understanding of how the purchasing behaviors 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.”

Eric Munson, founder and CIO of Adit Ventures, said: “Adit Ventures is a proud Klarna investor.

“We are excited to watch this unique brand continue to challenge the boundaries of modern payments, banking, and shopping.

“Klarna’s rapid growth has been a testament to their innovation, leadership, and execution—however, we believe the best is yet to come as Klarna multiplies their addressable market through global expansion.”

David Fiszel, founder and CIO of Honeycomb Asset Management, said: “Honeycomb is proud to add to our earlier investments in Klarna.

“We are excited to support its long-term global growth initiatives and mission to redefine the consumer purchasing experience at scale.

“Klarna truly is a unique founder-led company with a world-class management team focused on innovation in the rapidly-growing fintech sector.”

Charlie Young, partner at WestCap, commented: “Klarna is leading a revolution in consumer preference, and has already reimagined the payments, eCommerce, and banking experience for tens of millions of people.

“Klarna’s global scale and leading market position create even more opportunity for the business going forward.

“WestCap is pleased to partner with Klarna at this exciting moment in the company’s history.”