FinTech: Klarna Gains More BNPL Muscle With $650M Mega Round

September 15, 2020 | FinTech, News, Venture Capital
https://dailyalts.com/wp-content/uploads/2020/09/klarna-vibe-first-reward-on-us.jpg

Klarna now also ranks as the biggest fintech unicorn in Europe, and fourth globally, after the round valued it at $10.65 billion.

A team of marquee investors, led by Silver Lake, invested $650 million in Klarna, the payments and shopping service known for its “buy-now-pay-later” (BNPL) offering.

GIC – Singapore’s sovereign wealth fund – as well as funds and accounts managed by BlackRock (NYSE: BLK) and HMI Capital, Sequoia Capital, Dragoneer, Permira, Commonwealth Bank of Australia (ASX: CBA), Bestseller Group, and Ant Group participated in the mega-round. Furthermore, Merian Chrysalis, TCV, Northzone, and Bonnier acquired shares from existing shareholders. (PR Newswire)

According to the WSJ, Silver Lake itself will account for $500 million out of the total funding, buying a less than 5% stake.

Buy Now Pay Later

Klarna has become highly popular in the U.S. due to its buy-now-pay-later” (BNPL) product. Due to the economic difficulties from COVID-19, many shoppers had overdrawn their accounts and credit cards and BNPL services were a fee-free and interest-free alternative.

BNPL lets you buy now and pay later over three or four installments with zero interest.

Besides, the pandemic has pushed more and more customers towards online shopping. It’s a safer alternative to physical shopping at malls and stores.

Klarna’s shopping app now has more than 12 million monthly active users worldwide, with 55,000 daily downloads.

To give a further boost to its BNPL product, Klarna has now introduced in the U.S. the world’s first buy-now-pay-later shopper loyalty program, Vibe, which rewards consumers who pay on time.

“We are at a true inflection point in both retail and finance,” said Sebastian Siemiatkowski, co-founder and CEO of Klarna in a statement. “The shift to online retail is now truly supercharged and there is a very tangible change in the behavior of consumers who are now actively seeking services which offer convenience, flexibility, and control in how they pay and an overall superior shopping experience.”

Use of funds

Klarna will use the funds from the latest round to grow its United States market and for developing the company’s products for merchants and customers.

According to BloombergQuint, Klarna intends to go for an IPO in the future. Siemiatkowski referred to the IPO as a “natural evolution.”

Related Story:  BNPL Biggie Klarna Could Value At $10B In Last Fundraise Before IPO

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/05/Michael-Saylor_HQ-2-scaled.jpg
Digital Assets: Michael Saylor Unmoved By Crypto Weakness; “We Think It’s The Future Of Money”
May 20, 2022     Digital Assets, News

Michael Saylor, CEO of MicroStrategy (NASDAQ: MSTR), who is permanently bullish on bitcoin, reiterated his positive outlook for the leading crypto in an interview on Thursday. Note that MicroStrategy currently…

https://dailyalts.com/wp-content/uploads/2022/05/bacteria-g0d4c93622_640-overlay.png
Digital Assets: Traditional Markets Could Suffer Contagion From (Un)Stablecoins (SEC Chair Gensler)
May 20, 2022     Digital Assets, News

The crypto world was dealt a body blow by the collapse of the TerraUSD (UST) stablecoin earlier this month. The Terra meltdown is now being referred as crypto’s “Lehman moment.”…

https://dailyalts.com/wp-content/uploads/2022/05/xendit-unit-combined.jpg
Venture Capital: Big-Ticket Funding Rounds In Fintechs
May 20, 2022     FinTech, News, Venture Capital

Fast-growing, Southeast Asia-focused payments infrastructure platform Xendit closed on a US$300 million Series D funding co-led by Coatue and Insight Partners with additional investment from Accel, Tiger Global, Kleiner Perkins,…

https://dailyalts.com/wp-content/uploads/2022/05/Hero_image_with_QR_code.jpg
FinTech: Sam Bankman-Fried Led FTX.US Makes Inroads Into Stock Trading
May 20, 2022     Digital Assets, FinTech, Latest News, News

FTX Stocks is an equity trading platform offered through the FTX US trading application. FTX US announced Thursday a private beta phase trading on the platform for US customers selected…