Pay Later App Klarna Receives 411 Million EUR Equity

Klarna receives 411 million EUR in an equity round led by Dragoneer Investment Group. Commonwealth Bank of Australia, HMI Capital LLC, Merian Chrysalis Investment Company Limited, Första AP-Fonden (AP1), IPGL, IVP and funds and accounts managed by BlackRock also participated in the funding. This equity round brings the platform’s total funding over nine rounds to 983 million EUR. The funding was announced in a press release Tuesday. 

Transparency, Technology and Creativity

The company is seeing massively positive responses to its products. It currently serves 130,000 merchants in 14 countries. Its user base in the United States is growing at a rate of 6 million customers per year. The payment platform plans to use this latest round of funding to accelerate growth in the US. 

“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. We, 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,” said Sebastian Siemiatkowski, co-founder and CEO of Klarna.

A Healthy Alternative

Founded in 2005, Klarna has developed an innovative payment form that allows customers to pay now, later, or over time. Overall, this service draws customers who are seeking a healthy alternative to credit spending. 

The fintech startup recently launched a shopping app that allows customers to shop in any store online with Klarna. Their platform resonates with customers and has increased revenue for retailers. Merchants who offer their ‘Pay in 4’ feature, which allows customers to pay over time, have reported a sixty eight percent increase in order value. 

The funding brings the company’s total valuation to 4.92 billion EUR.

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