Klarna becomes Europe’s biggest fintech unicorn at over $10 billion valuation
Klarna has been valued at $10.65 billion after raising $650 million in its latest equity funding round.
The new funding round means the disruptive payments provider is now the highest-valued private fintech in Europe, and the fourth highest worldwide.
The round was led by Silver Lake Partners, alongside GIC, Singapore’s sovereign wealth fund, as well as BlackRock and HMI Capital.
In addition, Merian Chrysalis, TCV, Northzone and Bonnier also acquired shares from existing shareholders. They will join current investors such as Sequoia Capital, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group and Ant Group.
Revolut, Klarna and Checkout had all been valued at $5.5 billion, according to CB Insights’ unicorn tracker, before the deal.
Klarna said the funding will help it further boost its global presence, with the US market becoming a key focus.
Due to the accelerated shift to online retail, the company has added over 35,000 new retailers during the first half of 2020 to its network of more than 200,000 retail partners, including Sephora, Groupon and Ralph Lauren.
Klarna also highlighted that the COVID-19 pandemic has led to a 36% rise in year-on-year revenue for the first half of 2020, up to $466 million.
Klarna co-founder and chief executive Sebastian Siemiatkowski said: “The shift to online retail is now truly supercharged and there is a very tangible change in the behaviour of consumers who are now actively seeking services which offer convenience, flexibility and control in how they pay and an overall superior shopping experience.”
“Klarna’s unique proposition, consumer preference and global retailer network will prove an excellent platform for further growth. The Klarna team is honoured to welcome such world class investors to support our mission to become the world’s favourite way to shop.”
Currently, the Klarna app has more than 12 million monthly active users worldwide, with 55,000 daily downloads.