The financing attracted support from both existing and new investors and will primarily be used to expand Klarna's market position in the US.
The investment is of USD 800 million in common equity and at a valuation 3x times higher than back in 2018, outperforming Klarna's public peers for the same time period. Klarna has not been immune to the significant downdrafts of fintech stock in public markets. The company's peers are down 80-90% vs peak valuations and consequently the adjustment in Klarna's valuation is on par with its public peers from its USD 45.6 billion valuation in June 2021.
Klarna received strong backing from its existing investors including Sequoia, the founders, Bestseller, Silver Lake, and Commonwealth Bank of Australia. More notably, several entities known for their commitments made their first investments in Klarna. These include Mubadala Investment Company, the USD 284 billion sovereign fund of the UAE, and Canada Pension Plan Investment Board (CPP Investments). Post the major closure of the round, Klarna now aspires to allow all its more than 1000 smaller shareholders to participate on a pro-rata basis in a process that will continue for the coming few weeks.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now