Klarna has tripled its valuation in its latest funding round solidifying its place as Europe’s most valuable startup.
The Swedish “buy now, pay later” giant has raised a further $1 billion in a fresh funding round at a valuation of $31 billion.
This astronomical valuation is three times the $10.65 billion valuation it received during its last funding round in September, despite growing calls for regulation of the industry.
According to Klarna’s chief executive Sebastian Siemiatkowski, the company hoped to raise $500 million in its latest funding round, but investor demand was so high the investment doubled.
Seimiatkowski said he could have raised as much as $3 billion.
The huge boost in market confidence in the company comes as Klarna begins to gather pace in the US, which is on track to overtake Germany as its biggest market by the end of the year.
Klarna’s new funds will reportedly be invested into continuing to challenge the credit card industry, which Seimiatkowski says many investors believe is “at its core flawed”.
Another chunk of this money will go towards buying up technology companies which can enhance its offering, while a further $10 million would be donated to organisations helping combat climate change.
In September, Klarna said that the coronavirus crisis it had driven a 36 per cent rise in year-on-year revenue for the first half of 2020, up to $466 million.
“The shift to online retail is now truly supercharged and there is a very tangible change in the behaviour of consumers who are now actively seeking services which offer convenience, flexibility and control in how they pay and an overall superior shopping experience,” Siemiatkowski continued.