Klarna confirms USD 1 bln investment, reaches SUD 31 bln valuation

Tuesday 2 March 2021 10:04 CET | News

Buy-now-pay-later (BNPL) lender Klarna has confirmed the rumoured billion-dollar investment, making the fintech the second-highest valued in the world, according to AltFi.

According to Klarna, the USD 1 billion round had been 4x oversubscribed, with Klarna reaching a valuation of USD 31 billion. The funding comes just six months after its last USD 650 million funding round, when the fintech was valued at just USD 10.65 billion. Klarna also announced that 1% of the funds raised (USD 10 million) would be put towards sustainability initiatives, which Klarna is planning to reveal on 22 April 2021 on World Earth Day.

Klarna offered a hint of its product roadmap in February 2021 with the launch of bank accounts in Germany. The lender also teamed up with Swedish cryptocurrency broker Safello to let the startup use its Open Banking rails for payments.

A Worldpay report last week indicated that annual BNPL spending, currently at GBP 9.6 billion in the UK, could reach GBP 26.4 billion by 2024 or 10% of the ecommerce market.

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Keywords: Klarna, Open Banking, BNPL, investment
Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
This article is part of category

Banking & Fintech