Klarna raises $650m funding at $10.6bn valuation

Klarna has closed its $650 million in an equity funding round, at a post money valuation of $10.65 billion.

The Swedish-based buy now, pay later (BNPL) firm has doubled its value which was previously set at $5.5 billion just over a year ago.

The valuation ranks Klarna as the highest-valued private fintech in Europe, and the fourth highest worldwide.

Silver Lake private equity firm put $500 million into the round, according to WSJ sources. Singapore’s sovereign wealth fund GCI and accounts managed by BlackRock and HMI Capital, also participated in the funding.

Additionally, Merian Chrysalis, TCV, Northzone and Bonnier have acquired shares from existing shareholders. They will join current investors such as Sequoia Capital, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group and Ant Group in supporting Klarna’s future growth.

The funding will help Klarna further invest in its shopping offering, continue its expansion across all markets. It’ll focus its growth in the US where the company claims to have more than 9 million consumers.