Fintech Firm Klarna Secures $639 Million in Funding

Klarna, a Sweden-based financial technology firm, announced that it has raised $639 million in the latest funding round for global expansion. The recent investment round was led by SoftBank’s Vision Fund 2.

According to an official press release, the company is now valued at $45.6 billion, the highest valuation received by a private Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term firm in Europe. Klarna mentioned that 1% of the total equity raised by the company will be directed to initiatives supporting planet health.

Apart from SoftBank’s Vision Fund 2, Klarna’s existing investors including Adit Ventures, Honeycomb Asset Management, and WestCap Group also participated in the recent funding round. Klarna has more than 90 million active users across the world. The fintech company facilitates clients through convenient Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term.

Commenting in the announcement, Sebastian Siemiatkowski, Founder and CEO of Klarna, said: “Consumers continue to reject interest-and fee-laden revolving credit and are moving toward debit while simultaneously seeking retail experiences that better meet their needs. Klarna's more transparent and convenient alternatives align with evolving global consumer preferences and drive worldwide growth. I’m very proud of the investors who are supporting Klarna’s ambition to challenge these outdated models to empower consumers with fair, transparent and convenient products to help them bank, shop and pay each day.”

The recent announcement from Klarna came nearly three months after Stripe, an online payment processing company, secured a $600 million investment in a funding round at a valuation of $95 billion.

International Expansion

Klarna mentioned that the company is planning to accelerate its global expansion through the latest funds. Since the start of this year, the fintech firm has expanded its operations in several countries including France, where the company launched its services this week.

“Klarna’s growth is founded on a deep understanding of how the purchasing behavior of consumers is changing, an evolution which we believe is accelerating. Klarna has already successfully expanded into the US, 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, commented.