Klarna, a Sweden-based financial technology firm, announced that it has raised $639 million in the latest funding round for global expansion. The recent investment round was led by SoftBank’s Vision Fund 2.
According to an official press release, the company is now valued at $45.6 billion, the highest valuation received by a private fintech firm in Europe. Klarna mentioned that 1% of the total equity raised by the company will be directed to initiatives supporting planet health.
Apart from SoftBank’s Vision Fund 2, Klarna’s existing investors including Adit Ventures, Honeycomb Asset Management, and WestCap Group also participated in the recent funding round. Klarna has more than 90 million active users across the world. The fintech company facilitates clients through convenient payments.
Commenting in the announcement, Sebastian Siemiatkowski, Founder and CEO of Klarna, said: “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. I’m very proud of the investors who are supporting Klarna’s ambition to challenge these outdated models to empower consumers with fair, transparent and convenient products to help them bank, shop and pay each day.”
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The recent announcement from Klarna came nearly three months after Stripe, an online payment processing company, secured a $600 million investment in a funding round at a valuation of $95 billion.
Klarna mentioned that the company is planning to accelerate its global expansion through the latest funds. Since the start of this year, the fintech firm has expanded its operations in several countries including France, where the company launched its services this week.
“Klarna’s growth is founded on a deep understanding of how the purchasing behavior of consumers is 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,” Yanni Pipilis, Managing Partner for SoftBank Investment Advisers, commented.