Klarna’s valuation set to triple to $30bln, says report
Klarna is currently working on a new share issue which could value the start-up at triple its $10 billion valuation, somewhere between $25 billion and $30 billion.
That’s according to Swedish news outlet Breatkit, which quotes three sources with knowledge of the round.
The new share issue is understood to be raising SEK 4.2 billion ($506 million).
Breatkit says the new share issue means none of Klarna’s old owners want to sell. The publication also alleges that Klarna is looking to list within the next one to two years.
FinTech Futures reached out to a Klarna spokesperson who called the report “complete speculation” and refused to comment.
The buy now, pay later (BNPL) start-up also launched its bank accounts in Germany on Wednesday. They come with a Visa debit card which can work in tandem with both Google Pay and Apple Pay. The launch is a first of its kind for Klarna.
Amidst all of this, Klarna’s CEO Sebastian Siemiatkowski, told his Twitter followers on Wednesday that he has contracted COVID-19. He is on his sixth day of having the virus, meaning the CEO has at least another eight days of isolation to complete.
“Financial super app”
According to TechCrunch, Klarna is trying to create a “financial super app”.
Its German bank accounts are currently only available to “a limited number of Klarna’s most loyal consumers”, as per its release.
The plan is “to intensively collect and integrate feedback before gradually rolling out to all Klarna users in Germany in the coming months”, it says.
Customers sign up through “Klarna Ident”, its self-developed Know Your Customer (KYC) technology. The mobile turned banking app includes three-click transfers, instant top-ups, smart budgeting, as well as spending categorisation and tracking.
Users can also withdraw cash from ATMs twice a month for free, domestically, or abroad.
“In future, German consumers will also be able to set savings goals,” says Klarna. The BNPL firm has already launched a savings account product in Sweden.
“Users are demanding more seamless, intuitive and transparent services to meet their daily needs. But many banks still do not cater for this,” says Siemiatkowski upon the announcement.