Klarna Raises $650 Million in Funding Round, Becomes
Swedish fintech company Klarna has raised $650 million in a funding round led by Silver Lake, with participation from BlackRock, Singapore’s sovereign wealth fund GIC, and HMI Capital [1]. This funding round nearly doubles the company’s valuation to $10.65 billion, making it the most valuable fintech startup in Europe [2]. Klarna’s previous valuation was $5.5 billion, which it achieved in 2019 after raising $460 million [1].
Klarna is a payment and shopping service that allows customers to buy now and pay later. The company has over 90 million users globally and works with over 200,000 merchants [3]. Klarna’s success can be attributed to its focus on providing a seamless payment experience for customers, which has helped it gain a loyal following [4].
Expanding into the US Market
Klarna has been making a big push into the US market ahead of a probable IPO [3]. The company has been expanding its partnerships with US retailers, including Macy’s and Sephora, to offer its buy now, pay later service to American consumers [4]. Klarna’s entry into the US market has been successful so far, with the company reporting a 553% increase in US sales in the first half of 2020 compared to the same period last year [2].
The Future of Klarna
Klarna’s latest funding round will help the company continue its expansion into new markets and invest in new products and services [1]. The company plans to use the funds to further develop its payment platform and expand its product offerings [2]. Klarna is also exploring new partnerships with financial institutions to offer more financial services to its customers [4].
The company’s success has not gone unnoticed by its competitors. Other payment providers, such as Afterpay and Affirm, are also offering buy now, pay later services and are looking to expand their market share [3]. However, Klarna’s strong brand recognition and loyal customer base give it an advantage over its competitors [4].
Conclusion
Klarna’s latest funding round has made it the most valuable fintech startup in Europe, with a valuation of $10.65 billion. The company’s success can be attributed to its focus on providing a seamless payment experience for customers. Klarna’s expansion into the US market has been successful, and the company plans to use its latest funding to continue its growth and invest in new products and services. As Klarna continues to expand, it will face competition from other payment providers, but its strong brand recognition and loyal customer base give it an advantage in the market.
