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.”