SoftBank Backs Fintech Giant Klarna to Raise $639 Million at $45 Billion Valuation
- Dow, S&P post worst week in months after hawkish Fed spooks investors
- Fed-fueled dollar rises as bears make for exits
- Adobe (ADBE) Edges Higher After Topping Q2 Estimates, Analysts Raise PT on 'Impressive' Performance
- Fed Statement Very Bullish for Tech Stocks, Focus on Cloud and Cyber Stocks - Wedbush
- You Fight Real Physical Inflation With Rate Hikes, Not Talk of Rate Hikes; Buy the Dip in Commodities, Gold Underpriced - Goldman Sachs
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
Payments provider Klarna announced it raised $639 million in a new funding round led by SoftBank Vision Fund 2, along with participation from existing investors including Adit Ventures, Honeycomb Asset Management, and WestCap Group.
Other Klarna’s backers include Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group, Ant Group, Northzone, Singapore’s sovereign wealth fund, and funds and accounts managed by BlackRock and HMI.
Klarna will use the new capital to fund overseas expansion and invest in global retail growth.
The latest funding round takes Klarna’s post-money valuation to $45.6 billion, reinforcing its position as the highest-valued private financial technology company in Europe and second-highest in the world.
The company said 1% of raised capital will be invested into initiatives for promoting planet health.
Founded in 2005, Klarna is a global payments provider that allows consumers to shop, pay and bank in a smarter and more efficient way compared to traditional payments and banking methods.
The demand for Klarna’s healthier and more convenient payment solutions has been on the rise as consumers continue to keep clear from traditional credit lines where they incur interest and high fees.
"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,” said Sebastian Siemiatkowski, founder and CEO of Klarna.
“I'm very proud of the investors who are supporting Klarna's ambition to challenge these outdated models to empower consumers with fair, transparent, and convenient products to help them bank, shop and pay each day."
For the first quarter of this year, Klarna reported $18.9 billion, driven by growth in all markets, particularly in the United States where the company has 18 million active consumers. Klarna was ranked among the top 10 app downloads throughout the entire 2020, a momentum that continued this year as the number of downloads surged by 125% year-over-year.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Turkish E-commerce Firm Trendyol In Talks To Raise $2 Bln From Investors Including Softbank And General Atlantic - Reuters
- CIT Group (CIT) to sell aviation loan portfolio to KKR (KKR)
- MKS Instruments (MKSI) has approached Atotech (ATC) with an acquisition offer - Reuters
Create E-mail Alert Related CategoriesPrivate Company News, Private Equity
Related EntitiesSequoia Capital, Permira
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!