Home / Business / Fintech giant Klarna raises $639 million at a $45.6 billion valuation amid ‘Huge momentum’ in the US – TechCrunch

Fintech giant Klarna raises $639 million at a $45.6 billion valuation amid ‘Huge momentum’ in the US – TechCrunch

More than three months after the last fundraising European fintech giants Clara announced today that The company raised another $639 million at a post-raising valuation of $45.6 billion.

Rumors have been circulating in recent weeks that Klarna is raising more money, raising more than $40 billion, but the Swedes Buy now, pay later and upstart the bank. declined to comment until now.


7;s Vision Fund 2 led the latest round that included participation from existing investor Adit. Ventures, Honeycomb Asset Management and WestCap Group, the new valuation represents a 47.3% increase over Klarna’s post-money valuation of $31 billion. early March, Upon raising $1 billion, a 330% increase from a $10.6 billion valuation at the time of raising $650 million. last SeptemberPrevious sponsors include Sequoia Capital, SilverLake, Dragoneer and Ant Group, among others.

The latest financing reinforces Klarna’s position as the most valuable private fintech in Europe.

In an exclusive interview with TechCrunch, CEO and founder Klarna Sebastian Siemiatkowski said the company is growing rapidly in the US. and plans to use part of the new capital to continue to grow there and around the world.

especially in the past year fintech has seen There is “huge momentum” in the country, with more than 18 million American consumers using Klarna, he said, up from 10 million at the end of last year’s third quarter and an 118% year-over-year increase. with 24 of the top 100 US retailers, said to be “more than any other competitor”.

In total, Klarna is listed in 20 markets, with more. 90 million global users and more than 2 million daily transactions performed on the platform. The company’s momentum can be seen in its impressive financial results. In the first quarter, Klarna posted $18.1 billion in volume compared to $9.9 billion in the prior year’s first quarter. In 2020, $53 billion is processed. to put that into context Affirm’s financial report in May expects to run $8.04 billion in volume for the entire fiscal year 2021, and Afterpay expects $16 billion in volume for the entire fiscal year.

March 2021 was also a record month for global purchases, with $6.9 billion in purchases made through the Klarna platform.

Meanwhile, in 2020 Klarna grossed more than a billion. Although the company was profitable during the first 14 years of life. But it hasn’t been profitable in the past two years. Siemiatkowski And that’s by design.

“We have greatly expanded our investment in growth and technology. But the loss is uncommon for us,” he told TechCrunch. “We will be back to profit soon.”

Klarna entered six new markets this year alone. including New Zealand and France. which just launched this week It is planning to expand into several new markets this year. The company employs approximately 4,000 people, with hundreds in US markets such as New York and Los Angeles. It also has offices in Stockholm, London, Manchester, Berlin, Madrid and Amsterdam.

While Klarna partners with over 250,000 retailers worldwide (including Macy’s, Ikea, Nike, Saks), the buy now feature Postpay is also available directly to consumers through the shopping app. This means consumers can use Klarna’s app to pay immediately or later. as well as manage spending and view available balances They can also do things like initiate a refund. track delivery and receive price reduction notifications

“Our shopping browser allows users to use Klarna on the go.” Siemiatkowski said:No one offers that and it is quite limited to integrate with merchants.”

Image Credits: Clara

The other thing the company plans to do with the new capital is to focus on acquisitions, especially based acquisitions. Ziamiatkovsky. according to CrunchbaseThe company has made nine well-known acquisitions over time. Recently, it has chosen a content creation service provider on Los Gatos Toplooks.ai.

“We are the market leader in this area. And we want to find new partners who want to support us in this area.” Siemiatkowski told TechCrunch, “that This gives us better pre-qualification for future success. We now have cash and funds available for further long-term investment.”

Klarna has long been rumored to go public through the show directly. Siemiatkowski said the company, in many ways, acts like a public company, offering shares to all employees and financial reports, which makes sense the company is in no hurry to go public.

“We report quarterly to national authorities and are a fully regulated bank. So you should do everything you expect from a public company, like risk control and compliance,” he told TechCrunch. “We’re getting to the point where it’s going to be a natural evolution of a company in an IPO, but We are not preparing an IPO anytime soon.”

At the time of the final funding round, Klarna announced its GiveOne Initiatives to support global health In this round, the company will return 1% of its capital to the world once again.

naturally The company’s investors are bullish on what the company is doing and its market position. Yanni Pipilis, managing partner at SoftBank Investment Advisers, said the company’s growth isIt arises from a deep understanding of consumer purchasing behavior. change.” SoftBank’s evolution is believed to be only accelerating.

Eric Munson, Founder and CIO of Adit Ventures, said his company believes “The best is yet to come as Klarna expands its identifiable market through its global expansion.”

for Siemiatkowski What Klarna is trying to achieve is to compete with the $1 trillion credit card industry.

Now we really see all the signs there. Real competition is coming to this area in this decade,” he said. “This is an opportunity to really destroy the retail banking space.”

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