Klarna, a global leader in payments and banking, and provider of smoooth retail services, raised $460m in equity funding.
The round, which post money valued the company at $5.5 billion, was led by Dragoneer Investment Group, with participation from Commonwealth Bank of Australia, HMI Capital LLC, Merian Chrysalis Investment Company Limited, Första AP-Fonden (AP1), IPGL, IVP and funds and accounts managed by BlackRock.
The company intends to use the funds to continue its growth in the US market, where it is currently growing at an annual rate of 6 million new US consumers.
Founded in Stockholm, Sweden, in 2005, and led by Sebastian Siemiatkowski, CEO, Klarna is a global payments provider and fully licensed bank, which gives online consumers the option to pay now, pay later or over time – offering a smoooth checkout experience.
The company now works with 130,000 merchants including H&M, Adidas, IKEA, Expedia Group, ASOS, Pelotan, Abercrombie & Fitch, Michael Kors, Nike, AliExpress, Superdry, Sephora, Spotify, Wayfair, Gymshark, Samsung, Zara, Topshop, The Hut Group, Steve Madden, Boozt, Daniel Wellington, Bugaboo, Rue21, TOMS, Sonos, Agent Provocateur, Lufthansa, ETSY, ACNE Studios, Daniel Wellington, KLM, Turkish Airlines and many more.
Klarna, which has 2,500 employees and is active in 14 countries, has been backed by Sequoia Capital since 2010 and more recently, Bestseller Group, Permira, Visa and Atomico.