Klarna raises $639m in SoftBank-led funding round
Swedish fintech Klarna has raised $639 million in a new funding round led by Japanese firm SoftBank.
The buy now, pay later (BNPL) company claims the investment takes its overall valuation up to $45.6 billion.
The round was led by SoftBank’s Vision Fund 2 with additional participation from existing investors Adit Ventures, Honeycomb Asset Management and WestCap Group.
Klarna says the funds will be used to support international expansion and advance its global retail growth.
Sebastian Siemiatkowski, Klarna founder and CEO, says: “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.
“I’m very proud of the investors who are supporting Klarna’s ambition to challenge these outdated models to empower consumers with fair, transparent and convenient products to help them bank, shop and pay each day.”
The BNPL model adopted by Klarna has become increasingly popular in recent years. The company’s presence extends across 17 countries and 250,000 retail partners. Among them are brands such as H&M, IKEA, Samsung, Nike and Macy’s.
Yanni Pipilis, managing partner for SoftBank Investment Advisers, adds: “Klarna’s growth is founded on a deep understanding of how the purchasing behaviours of consumers are changing, an evolution which we believe is accelerating.
“Klarna has already successfully expanded into the US and we are excited to continue supporting the team in bringing the next generation of financial services to new markets worldwide.”
As part of the GiveOne initiative established by Klarna earlier this year, 1% of the equity raised will be directed to green initiatives supporting planet health.