‘Buy now, pay later’ fintech Klarna raises $1bn

‘Buy now, pay later’ fintech Klarna raises $1bn

Klarna, the Swedish fintech company, has raised $1bn in funding that values the ‘buy now, pay later’ outfit at $31bn.

The round makes Klarna Europe’s most valuable privately held fintech company as it expands beyond providing credit for shopping and into broader digital banking and payment services.

The Stockholm-based company did not disclose the names of the investors in the bumper round – which has been much rumoured for some time – but said it was a mix of new and existing backers and claimed that the round was four times oversubscribed.

“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want transparent products to help them bank, shop and pay that reflect the way they live their lives, not just outdated traditional models,” chief executive Sebastian Siemiatkowski said in a statement.

He added that the company will be pledging 1pc of the money raised in this round to sustainability initiatives.

He said that the fintech industry “has a responsibility to help in some way solve global sustainability issues and I hope others will join Klarna in our ambition”.

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Source: ‘Buy now, pay later’ fintech Klarna raises $1bn