Klarna is engaged in offering payments, social shopping, and personal finances to consumers and retailers
Swedish fintech company Klarna has secured $650m in a new equity funding round at a valuation of $10.65bn for its global payments and shopping service.
The funding round is led by technology investor Silver Lake.
Singaporean sovereign wealth fund GIC and also funds and accounts managed by BlackRock and HMI Capital took part in the new investment round.
Simultaneously, the Swedish fintech company said that Merian Chrysalis, Northzone, TCV, and Bonnier acquired its shares from existing shareholders.
The new investors have joined the likes of Sequoia Capital, Dragoneer, Permira, Bestseller Group, Commonwealth Bank of Australia, and Ant Financial Services Group in supporting the future growth of the fintech firm.
Silver Lake co-CEO and managing partner Egon Durban and managing director Jonathan Durham said: “Klarna is one of the most disruptive and promising fintech companies in the world, redefining the ecommerce experience for millions of consumers and global retailers, just as ecommerce growth is accelerating worldwide and rapidly shifting to mobile.
“Klarna’s retail partners benefit from incremental traffic and dramatically improved customer conversion. Consumers love Klarna for its differentiated app-based shopping experience and for their flexible and transparent payment options.”
Following the latest round of funding, Klarna claims to be ranked as the highest-valued private fintech company in Europe and the fourth highest in the world.
How Klarna plans to use the proceeds from the new funding round
The company plans to use the proceeds from the funding round to invest further in its shopping offering, to expand its global footprint, and accelerate its momentum across all markets.
Klarna is particularly eyeing expansion in the US where it has grown to have over nine million consumers. Across the world, the company claims to have over 90 million consumers.
Klarna co-founder and CEO Sebastian Siemiatkowski said: “We are at a true inflection point in both retail and finance. The shift to online retail is now truly supercharged and there is a very tangible change in the behaviour of consumers who are now actively seeking services which offer convenience, flexibility and control in how they pay and an overall superior shopping experience.
“Klarna’s unique proposition, consumer preference and global retailer network will prove an excellent platform for further growth.”
Founded in 2005 in Stockholm, the company embarked on a mission to make it easier for people to do online shopping. It has been operating as a fully licensed bank that specialises in e-commerce payments.
The company is engaged in offering payments, social shopping, and personal finances among other services to consumers and retailers.
The Swedish payments disruptor had developed a system for shoppers and merchants that offers an alternative to traditional credit facilities.
In August 2019, the fintech firm bagged an investment of $460m in a funding round that valued its business at $5.5bn.