Bulletin
Investor Alert

June 10, 2021, 11:27 a.m. EDT

‘Buy now, pay later’ service Klarna valued at $46 billion after new funding round

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    SoftBank Group Corp. (9984)
  • X
    Abercrombie & Fitch Co. (ANF)
  • X
    Nike Inc. Cl B (NKE)

or Cancel Already have a watchlist? Log In

By Lina Saigol

Swedish-based payments service Klarna has raised more than $639 million in a new private fundraising round, led by Japan’s SoftBank /zigman2/quotes/207303954/delayed JP:9984 -3.60% , boosting its valuation to almost $46 billion.

The new valuation represents an increase of almost 50% from Klarna’s post-money valuation of $31 billion in March, when it raised $1 billion, and cements its position as Europe’s most valuable fintech startup.

Klarna allows shoppers to buy online through merchant partners including Abercrombie & Fitch /zigman2/quotes/206677024/composite ANF -2.40% , Nike /zigman2/quotes/203439053/composite NKE -0.31% and Peloton /zigman2/quotes/208035743/composite PTON -1.08% and split payments into interest-free installments.

The use of “buy now, pay later” products — known in the industry as BNPL — has surged during the COVID-19 pandemic. A recent review by the U.K. Financial Conduct Authority’s former interim chief executive, Christopher Woolard, found that the value of transactions using BNPL had nearly quadrupled between January and December 2020. Overall BNPL is around 1% of the total credit market, the review determined.

Read: The buy now, pay later wave: Klarna, Affirm and rivals hope to take U.S. by storm

Klarna plans to use the new cash injection to help support its international expansion. It has been investing heavily in the U.S., where it now has 18 million customers.

“Klarna has already successfully expanded into the U.S., and we are excited to continue supporting the team in bringing the next generation of financial services to new markets worldwide,” Yanni Pipilis, managing partner for SoftBank Investment Advisers, said in a statement on Thursday.

Along with SoftBank’s Vision Fund 2, the latest fundraising round included participation from existing investors Adit Ventures, Honeycomb Asset Management and WestCap Group. Klarna’s other investors include Sequoia Capital, Silver Lake, BlackRock /zigman2/quotes/207946232/composite BLK -1.10% and the Singapore sovereign wealth fund GIC.

/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 6,833.00
-255.00 -3.60%
Volume: 10.38M
July 28, 2021 12:30p
P/E Ratio
2.81
Dividend Yield
0.00%
Market Cap
¥12170.30 billion
Rev. per Employee
¥202.77M
loading...
/zigman2/quotes/206677024/composite
US : U.S.: NYSE
$ 38.67
-0.95 -2.40%
Volume: 987,572
July 27, 2021 4:00p
P/E Ratio
14.54
Dividend Yield
0.00%
Market Cap
$2.44 billion
Rev. per Employee
$91,923
loading...
/zigman2/quotes/203439053/composite
US : U.S.: NYSE
$ 164.57
-0.52 -0.31%
Volume: 4.36M
July 27, 2021 4:00p
P/E Ratio
46.22
Dividend Yield
0.67%
Market Cap
$261.14 billion
Rev. per Employee
$606,999
loading...
/zigman2/quotes/208035743/composite
US : U.S.: Nasdaq
$ 121.36
-1.32 -1.08%
Volume: 4.06M
July 27, 2021 4:00p
P/E Ratio
193.99
Dividend Yield
N/A
Market Cap
$36.59 billion
Rev. per Employee
$494,288
loading...
/zigman2/quotes/207946232/composite
US : U.S.: NYSE
$ 861.88
-9.61 -1.10%
Volume: 476,093
July 27, 2021 4:00p
P/E Ratio
24.22
Dividend Yield
1.92%
Market Cap
$132.73 billion
Rev. per Employee
$1.03M
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.