Klarna secures $639million in funding

The Swedish fintech valuation grew to $46 billion after it secured another investment worth $639million.

Klarna already managed to raise $1bn earlier this year from a number of undisclosed investors at a $31bn value.

Read also: A$AP Rocky invests in Klarna and launches an ad campaign for the company

This round was led by SoftBank’s Vision Fund 2, participated by existing investors Adit Ventures, Honeycomb Asset Management and WestCap Group, to support Klarna’s international expansion and further capture global retail growth.

Sebastian Siemiatkowski, Klarna Founder and CEO 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“I’m very proud of the investors who are supporting Klarna’s ambition to challenge these outdated models to empower consumers with fair, transparent, and convenient products to help them bank, shop and pay each day.”

Yanni Pipilis, managing partner for SoftBank Investment Advisers said, “Klarna’s growth is founded on a deep understanding of how the purchasing behaviours of consumers are 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.”

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The volume of transactions also testifies to how the most valuable startup in Europe is doing. In the past quarter, Klarna reached $ 18.1 billion, almost once as much as in the same months last year. 

In 2020, Klarna processed $ 53 billion in payments, significantly more than the Affirm or Afterpay competitors plan for this year.