Klarna Becomes Europe’s Largest Fintech with $5.5bn Valuation

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Global disruptor of payments and banking Klarna has declared a $460 million raise in an equity funding round. This bring the fintech to a post cash valuation of $5.5 billion, and ranks Klarna as the largest non-public fintech in Europe and as one of the biggest non-public fintechs globally.

In a press statement earlier released, the company stated that the funding will:

help Klarna to continue its rapid rise in the US market, where it is currently growing at an annual rate of 6 million new US consumers.

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Klarna’s distinct client offering provides a better and smarter alternative to credit cards, with the addition of multiple services to smoothen the shopping capability, both online and offline.

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This comes at a time when shoppers are shunning from revolving credit lines towards alternative and a lot more versatile funding alternatives. Klarna’s recently launched shopping app that permits its users to buy with Klarna at any store or brand online has been received very much positively, with now over 500th of the app users buying every week.

Klarna has also seen a flow in merchant demand for its services. Klarna is currently powering over 3000 merchants within the United State – together with rue21, ASOS, Lulus, Toms, Superdry, Sonos and Acne (Skin disease) Studios – and helping them increase new client acquisition, average order worth and retention.

Klarna currently serves over 60 million consumers, 130,000 merchants partners, has 1 million transactions on daily basis and is in sight of a $1 billion annual revenue.

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Sebastian Siemiatkowski, co-founder and CEO of Klarna said:

This is a decisive time in the history of retail banking. Finally, transparency, technology and creativity will serve the consumer, and there will be no more room for unimaginative products, non-transparent terms of use or lack of genuine care of ones customers.

“All 2500 of us at Klarna, are humbled and honoured, and now also further empowered, to play a role in this improvement of an industry for the benefit of the consumer, worldwide and in the US in particular.