Home / SmartTech / Klarna raises $ 650 million at a valuation of $ 10.6 billion – TechCrunch

Klarna raises $ 650 million at a valuation of $ 10.6 billion – TechCrunch

The fintech startup Klarna has launched a mega financing round led by Silver Lake. The company is raising $ 650 million on a post-money valuation of $ 10.65 billion. Klarna After today’s financing round, it is now the highest rated private fintech company in Europe.

In addition to Silver Lake, GIC (Singapore’s sovereign wealth fund) and funds and accounts managed by BlackRock and HMI Capital are also taking part in today’s financing round. Merian Chrysalis, TCV, Northzone and Bonnier have bought out existing shareholders.

Klarna’s main product is an alternative payment method on e-commerce platforms. You can buy now and later pay in three or four installments with 0% interest. It has been very popular in various European markets as many customers do not have credit cards and / or do not want to pay the fees associated with revolving credit lines.

Merchants are paid when the first transaction is made with Klarna, which transparently manages credit lines for customers. In addition to transaction fees, the company also generates revenue from late fees.

More recently, the company has expanded into the United States, where it now has 9 million out of 90 million customers. The company mainly competes with Affirm in the US. Klarna has expanded its offering by targeting consumers directly ̵

1; not just e-commerce companies.

You can now download the Klarna app to view all of your Klarna payments, access a marketplace of stores, track deliveries and set up price reduction notifications. The app also allows you to create virtual cards to pay with Klarna in unsupported stores like Amazon. It’s not as easy as clicking Klarna when checking out, but it works. The app has 12 million active users per month and 55,000 daily downloads.

The company launched a rewards program called Vibe this summer. It is currently only available in the US. You can earn points for every dollar you spend using Klarna as a payment method. You can exchange points for gift cards at H&M, Amazon, Walmart, Uber, etc.

Klarna now works with 200,000 retail partners such as Sephora, Groupon and Ralph Lauren. In the first half of 2020, the company recorded sales of $ 466 million and losses of $ 59.8 million.

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