Klarna to investors: We’re gonna need a bigger boat - $639 million added to the war chest

Klarna to investors: We’re gonna need a bigger boat - $639 million added to the war chest

Stockholm’s BNPL juggernaut Klarna has confirmed a new equity funding round of $639 million led by SoftBank’s Vision Fund 2. The raise also saw existing investors Adit Ventures, Honeycomb Asset Management, and WestCap Group pile on. With this raise Klarna now clocks in at a post-money valuation of $45.6 billion, a figure that is only eclipsed by Stripe in the fintech world.

“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,” comments Founder and CEO Sebastian Siemiatkowski. “I’m very proud of the investors who are supporting Klarna’s ambition to challenge these outdated models to empower consumers with fair, transparent, and convenient products to help them bank, shop and pay each day.”

With 18 million customers worldwide, 250,000 retailers globally, and almost one-quarter (24) of the top 100 US retailers, Klarna recorded over $18.9 billion in Q1 2021, a figure up 100% year-over-year when compared to 2020’s numbers. The firm consistently ranks among the Top 10 app downloads in the US and this momentum continues as downloads in 2021 have increased 125% year on year, propelling record volumes in March 2021.

As part of the GiveOne initiative established by Klarna earlier this year, 1% of this equity raised will be directed to initiatives supporting planet health.

Author's Note: Word on the street is that there’s more in store for Klarna in the coming days. Stay tuned.

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