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Klarna lets customers purchase now and pay later. It’s now value over $10 billion

The Swedish agency stated in an announcement Tuesday that it has raised $650 million from traders, which additionally embrace Singapore’s sovereign wealth fund (GIC) and funds managed by BlackRock. The firm stated it is now essentially the most helpful personal monetary know-how enterprise in Europe.

Klarna stated it should use the funds to take a position additional into the enterprise and develop its world presence, particularly within the United States, the place greater than 9 million shoppers have used its companies.

How 'buy now, pay later' companies are getting younger shoppers to use credit
Klarna permits internet buyers to pay for purchases in interest-free installments or by way of financing. Merchants that use the platform, similar to Sephora, H&M (HNNMY), Asos (ASOMY) and Adidas (ADDDF), are paid for items upfront by Klarna, which expenses a transaction charge and a share of the sale.

In the United States, Klarna competes with rivals together with Affirm and Afterpay, which is branded Clearpay in Europe. “Buy now, pay later” companies attraction specifically to youthful shoppers, who ceaselessly store on-line and will not have bank cards.

The Klarna app has greater than 12 million month-to-month energetic customers worldwide, with 55,000 day by day downloads, in line with the corporate. It has benefited from a surge in e-commerce throughout the coronavirus pandemic, including about 200 new retailers day by day within the first half of 2020 and promoting items value $22 billion, a 44% improve on the identical interval final yr.

“Klarna is one of the most disruptive and promising fintech companies in the world, redefining the e-commerce experience for millions of consumers and global retailers, just as e-commerce growth is accelerating worldwide and rapidly shifting to mobile,” Silver Lake’s co-CEO Egon Durban stated in an announcement.

Silver Lake can also be invested in Airbnb and Jack Ma’s Alibaba Group (BABA), and earlier this month made its second billion greenback funding into India’s Reliance Industries, after backing subsidiary Jio Platforms earlier this yr.
Current traders in Klarna embrace Sequoia Capital, Commonwealth Bank of Australia (CBAUF) and Ant Group, the monetary affiliate of Alibaba.

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