Klarna has become an innovator in the payments industry.
Swedish Klarna, a payment services company known for its “buy now, pay later” model, has become the largest private fintech company in Europe.
The main reason for this step forward for the company was the inflow of investment funds in the amount of $460 million. As a result, the company's value increased to $5.5 billion and Klarna became the largest private fintech company in Europe and the sixth largest in the world.
The investment was received from a number of investors, the main ones being Dragoneer, based in Silicon Valley, as well as BlackRock and the Commonwealth Bank of Australia.
Using the services of the company, customers can order from more than 130,000 major retailers, including such popular ones as H&M, Ikea, Nike, AliExpress, Sephora, Zara, Topshop, Toms and Asos, while delivery of goods is carried out immediately, but payment can be done later.
Klarna services are positioned as a cheaper alternative to credit cards. Buyers can pay for goods both in one-time and in several amounts, while there are no interest on the vast majority of purchases. The company's income is formed from the amount of commission that is charged from sellers, and those amounts that are paid by customers who are late in their payments.
The resulting investment flow will be directed by the company to expand its activities in the United States. Already today, Klarna cooperates in this market with more than 3,000 retailers, and the number of service users is growing rapidly, increasing by 6 million people annually. Also through an exclusive partnership with the Australian Commonwealth Bank, the company plans to expand into the Australian and New Zealand markets.