Klarna valued at $5.5bn as it becomes largest fintech startup in Europe

Ben StevensNews Payment

Klarna is now worth $5.5 billion making it Europe’s largest private fintech startup as it eyes a possible stock market float.

A recent funding round, led by Dragoneer Investment Group, raised $460 million in equity for the Swedish “buy now, pay later” company.

This has led to a post money valuation of $5.5 billion, up dramatically from $3.5 billion in April and $2.5 billion at the start of the year.

READ MORE: Asos expands Klarna service to US

It now ranks as the eighth most valuable private fintech company in the world, and the most valuable in Europe.

Klarna is now used by 60 million consumers across 130,000 merchant partners and boasts one million daily transactions while nudging $1 billion in annual revenues.

Though the company says it will use the new funds to drive its rapid expansion in the US, its chief executive Sebastian Siemiatkowski said an IPO is now likely to happen.

READ MORE: Klarna launches ecommerce app allowing US shoppers to pay later at any retailer

“At this point of time, it’s more likely than it has been previously,” he said.

“I definitely think it will happen. But it’s not like there’s a formal decision. Right now the whole company is just focused on making sure we are growing fast…

“This is a decisive time in the history of retail banking. Finally, transparency, technology and creativity will serve the consumer, and there will be no more room for unimaginative products, non-transparent terms of use or lack of genuine care of ones customers.”

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Ben StevensNews Payment

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