Klarna, a retail bank and payments services provider, has received $1bn in an equity funding round to support its global expansion and retail growth plans.
Both new and existing investors participated in the oversubscribed funding round and closed at a post-money valuation of $31bn, said the company.
The Swedish fintech firm claimed that with the current funding round, it becomes the highest-valued private fintech in Europe and the second-highest worldwide.
Klarna co-founder and CEO Sebastian Siemiatkowski: “At Klarna, we solve problems – that is the heart of what we do for both consumers and retailers.
“Consumers want transparent products to help them bank, shop and pay that reflect the way they live their lives, not just outdated traditional models.”
Klarna announced its plans to allocate 1% of the capital raised to a new initiative that focuses on important sustainability challenges worldwide.
The sustainability initiative is anticipated to be officially launched on 22 April 2021, on World Earth day.
The Klarna app offers mobile shopping services to consumers, where they can browse and shop at any brand online using Klarna payment options.
The app also enables the customers to track their spending, view balances, access customised discounts, receive price-drop notifications, track deliveries and join the company’s loyalty programme Vibe.
The company has more than 250,000 retail partners including Macy’s, Etsy, Sephora, Ralph Lauren and Urban Outfitters, which offer its services across different channels.
Klarna claimed that its offerings reflected in business results, where volume and revenue for 2020 increased by 46% to $53bn and 40% to $1bn year-on-year, respectively.
Siemiatkowski added: “Klarna is also proud to announce the company will pledge 1% of the capital raised to a newly created initiative that focuses on key sustainability challenges around the world. The initiative will be formally launched on April 22 on World Earth Day.
“Each and every one of us at Klarna will continue to work hard on this, but it is also time for us, with our culture of change, disruption and innovation, to focus on tackling bigger, more complex issues.
“I believe our industry has a responsibility to help in some way solve global sustainability issues and I hope others will join Klarna in our ambition.”
In September last year, Klarna has received $650m in a new equity funding round at a valuation of $10.65bn for its global payments and shopping service.
