Swedish buy now, pay later (BNPL) firm Klarna is considering a new funding round that would make it the most valuable startup in Europe, with a valuation of $50 billion to $60 billion.
That’s according to a report from Bloomberg News Thursday (Feb. 10), citing people familiar with the matter. These sources say Klarna is likely to tap sovereign wealth and pension funds as new investors. The $50 billion figure is based on preliminary estimates.
Klarna is considering letting its current investors sell some of their holdings as part of the fundraising while also exploring securing debt financing from banks to fuel its expansion plans, the people said.
The company raised $639 million in venture funding in June 2021, valuing Klarna at $45.6 billion.
The sources tell Bloomberg deliberations into this new potential funding round are nascent and could change. Klarna declined to comment.
Klarna has enjoyed rapid growth in the 11 years since its founding, especially in its expansion in the U.S. The rise of BNPL plans last year, driven by COVID-19 and a massive shift to online shopping, provided the company with a big boost.
The company launched in the U.S. in 2015 and now has upwards of 22 million users across the country. Klarna’s rise in America has coincided with the rise of BNPL, with nearly 56% of Americans saying they paid with this method in 2021, up from nearly 38% in 2020.
Read more: Klarna Intros Physical Card in UK
Last month, Klarna said it was introducing a physical Visa card in the U.K. that lets users pay in up to 30 days with no risk of interest or revolving credit. It was launched in conjunction with Klarna’s Pay in 30 plan, which lets customers make payments for merchandise anytime within 30 days after the purchase date.
At the time of the launch, the card had a waitlist of 400,000.