Based in Sweden, Klarna is a fully licensed bank and a specialist in e-commerce payments

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Klarna plans to raise over $500m in a new funding round. (Credit: Free-Photos from Pixabay)

Swedish fintech company Klarna is reportedly looking to raise over $500m in a new investment round that would take its valuation to more than $10bn.

In this connection, the payments company is engaged in talks with investors, reported Reuters citing three undisclosed sources.

The new investment round is expected to help the Swedish firm in further expanding its business in the US.

Recently, the company claimed to have added a million new consumers in the US during the summer months. It also said that its retail partnerships in the US had grown by over 158% year over year in the first half of 2020.

The investment is expected to come from certain existing and new investors, as per the publication, citing two of the sources.

A deal in this regard is likely to be disclosed shortly.

In August 2019, Klarna secured an investment of $460m in a funding round that valued its business at $5.5bn. The lead investors in that round were Dragoneer Investment Group, Commonwealth Bank of Australia, and Merian Chrysalis.

Recently, Ant Financial took a minority stake in Klarna

In March 2020, the Swedish payments firm said that Ant Financial Services Group, the owner of Alipay, has acquired a minority stake in it.

Established in 2005 in Stockholm, Klarna began with a mission to make it easier for people to do online shopping. The Swedish payments disruptor has been supported by investors such as Sequoia Capital, Visa, Bestseller, Permira, and Atomico.

It has been a fully licensed bank that specialises in e-commerce payments. The company had developed a system for shoppers and merchants that gives an alternative to traditional credit facilities.

With the company’s platform, consumers get to shop now and make payments later for their online transactions. Klarna’s products and services for consumers and retailers include payments, personal finances, and social shopping.

Currently, the Swedish fintech company is said to have nearly 3,500 employees and has presence in 17 markets across the world. It claims to have 85 million total end customers, and more than 200,000 merchants, while overseeing nearly a million purchases a day.

Earlier this week, Klarna introduced social shopping to UK Consumers by launching its newly redesigned app. It follows the recent launch of Vibe, a pay later shopper loyalty programme.