Swedish payments provider Klarna has announced a new round of equity funding, adding $460 million at a post-money valuation of $5.5 billion, which makes it one of the most highly valued private fintech companies in the world. The new funding will be used to help Klarna continue to grow its presence in the U.S. payments market.
This 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. The uniqueness of Klarna’s consumer offering, providing a healthier, simpler and smarter alternative to credit cards, with the addition of multiple services to smoothen the shopping experience, online and offline, is clearly resonating with the US consumer. This is as consumers are turning away from revolving credit lines towards alternative and more flexible financing alternatives. Most importantly, Klarna’s recently launched shopping app which allows its users to shop with Klarna at any store or brand online has been received very positively, with 3x more daily downloads than any of our direct competitors and with now more than 50% of the app users purchasing each week.
Klarna’s footprint continues to grow, now serving over 60 million consumers, 130,000 merchant partners, 1 million transactions daily and is in sight of a $1 billion annual revenue.
The new funding for Klarna is led by Dragoneer Investment Group, and includes participation by Commonwealth Bank of Australia, HMI Capital LLC, Merian Chrysalis Investment Company Limited, and more.
Full article: Link