Klarna Becomes Largest Private FinTech Company in Europe Following $460 Million Funding Round
Klarna, a payment company offering micro credit for online transactions like PayPal Credit, serves consumers and merchants in Europe and the United States while preparing to launch in Australia and New Zealand. They recently announced an equity funding round raising $460 million, valuing the credit terms alternative payment provider at $5.5 billion.
Credit terms alternative payment methods like Klarna and PayPal Credit, formerly Bill Me Later, are shown to provide merchants an increase in sales conversion and average order value (AOV). It is no wonder Klarna has more than 3,000 merchant clients just in the United States, and PayPal Credit enabled $10 billion in transactions in 2018.
The number of Klarna users in the U.S. is growing by 6 million per year and they are integrated with brands including H&M, Abercrombie & Fitch, Toms, Sonos and more. This attracted nearly 10 investors raising $460 million and valuing the company at $5.5 billion. This valuation now makes Klarna the largest privately owned FinTech company in Europe.
Recent investors in Klarna include Dragoneer Investment Group, Commonwealth Bank of Australia and BlackRock. The investment from Commonwealth Bank of Australia includes an exclusive partnership for the Australian and New Zealand markets.
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