The buyer is a consortium led by Kamjar Hajabdolahi, CEO and Founding Partner at BLQ Invest. This move is intended to allow KCO to further develop as a product in the online payment industry under new ownership.
Klarna Checkout, which was launched in 2012, has established itself as a prominent online shopping solution in Northern Europe, maintaining a market share of over 40% in Sweden and more than 20% across the Nordic countries. While KCO remains vital for the merchants it serves, Klarna has increasingly focused on providing flexible payment methods in collaboration with various service providers. This transaction enables Klarna to concentrate on its core offerings while ensuring that KCO continues to grow under specialised management.
The acquiring consortium includes Systematic Growth, founded by Ashkan Pouya, and serial entrepreneur Martin Randel. These investors are known for their commitment to expanding innovative Swedish companies and employing a ‘Buy and Build’ strategy. The consortium aims to build on the foundation established by Klarna and drive further development of KCO to meet the evolving needs of merchants and the ecommerce industry.
Ownership of Klarna Checkout will officially transfer to the new consortium on October 1st 2024. Both Klarna and the new owners are committed to ensuring a smooth transition. Klarna’s payment methods will continue to be available in the checkout process through a distribution partner agreement.
The acquisition process was guided by Deutsche Bank, which served as the sole financial advisor. Klarna undertook a comprehensive search over more than a year, engaging with prominent private equity firms and strategic buyers to find a suitable custodian for KCO.
Since its inception, KCO has played a transformative role in the online shopping experience, particularly in Northern Europe. Its introduction set a new benchmark for seamless transactions, making the checkout process quicker and more straightforward for consumers. This innovation resonated strongly with both shoppers and merchants, leading to widespread adoption across various sectors.
KCO's impact extended beyond mere convenience; it significantly boosted merchant sales by minimising the obstacles that typically deter customers from completing their purchases. The implementation of KCO resulted in notable reductions in cart abandonment rates and increased overall transaction volumes, contributing to the growth of the ecommerce market in the region.
The solution's user-centric approach, combined with robust security measures, ensured that customers could shop with confidence, knowing their transactions were secure. This emphasis on security and ease of use helped KCO build a loyal user base and established its reputation as a reliable and efficient payment platform.
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