Investments

Klarna’s Value Hits $10B With Latest Investment Round

Klarna’s Value Hits $10B With Latest Investment

Swedish FinTech Klarna is aiming to raise $500 million as it looks to fuel the expansion of its growing digital payments and online shopping business in the U.S. market, a new report states.

The Stockholm-based company is currently in talks with investors. The new round of funding values Klarna at a hefty $10 billion, Reuters reports, citing three sources. That represents a near-doubling in the company’s value, with Klarna previously weighing in at $5.5 billion in August of 2019.

Founded in 2005, Klarna has previously stated that the U.S. is poised to become its largest market.

Klarna’s latest round of funding is on track to be the last before the FinTech files for an IPO, Reuters said, citing a source. The Swedish firm is gearing up to start speaking with investment bankers over the coming months about its plans for a public listing. Klarna has previously said it was planning on an IPO within the next two years.

A spokesperson for Klarna declined to comment to Reuters.

Klarna offers a buy now, pay later (BNPL) online shopping service through which consumers make purchases from retailers in Klarna’s network without an upfront payment. Shoppers can spread their payments over four interest-free installments over two months, or can pay it all in a month.

The Swedish firm’s lineup of investors includes Sequoia Capital, Bestseller, Dragoneer and Commonwealth Bank of Australia.

Klarna has also been busy ramping up its operations in the United Kingdom. The company recently unveiled a redesigned app aimed at U.K. shoppers.

“Despite the shifting retail landscape, consumers are still looking for inspiration, convenience and value — and it’s become obvious that shopping online now goes far beyond just a transaction,” said CEO Sebastian Siemiatkowski in a statement at the time. “The new Klarna app elevates the entire shopping experience from start to finish by bringing together all the best aspects of shopping in one place, giving Klarna users a unique and personalized experience at their fingertips.”

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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