Klarna, Europe’s premier “buy now, pay later” financing startup has closed a big new round of funding. It’s a $639mn financing round valuing it a whopping $45.6bn.
The financing round was led by SoftBank’s Vision Fund 2, a new investor in the company. Other existing investors including Adit Ventures and WestCap Group also chipped into the round.
With a $46bn valuation, Klarna has taken the top spot as the most valuable privately-held tech startup in Europe, according to CB Insights data. Globally, it’s the second-most valuable, only beaten by American payments processor Stripe.
A company based out of Sweden, Klarna has built itself into the leading “buy now, pay later” provider globally, beating out Afterpay in Australia and Affirm in America. The company reported $1.1bn in net revenue on a gross merchandise volume of $53bn in 2020.
After conquering many markets in Europe, Klarna’s major focus is now in the US, where it launched in 2020. At that, it’s been very successful with a self-reported 18 million users in the country.
With its new funding, Klarna said it has its eyes mostly set on continued international expansion. Such is not surprising for a company reported to be eyeing a public listing soon.
With its latest round, Klarna has now raised a total of [$3.7bn] in venture funding. That sets a record for a European tech startup.