8.6 C
New York
Thursday, October 6, 2022
Home Fintechs Alipay owner Ant Financial takes minority stake in Klarna

Alipay owner Ant Financial takes minority stake in Klarna

 Klarna, Europe’s most valuable fintech company, said on Wednesday that China’s Ant Financial Services Group had taken a small stake in it as the two strengthen their online shopping partnership. Ant Monetary is a cost affiliate of Chinese language e-commerce Alibaba.

The investment by Ant, which will not have any operational influence on Klarna, was via a mix of new and existing shares, according to people familiar with the deal. The transaction valued the group at slightly more than $5.5bn, they added. Ant Financial made its biggest push into western markets last year with the $700m acquisition of UK payments group World First.

Related: Pay later with Klarna! Retailers discuss future on Klarna’s platform

“The current partnership where Klarna payments are available in AliExpress should now expand to new markets globally,” CEO Sebastian Siemiatkowski told Reuters, adding that Klarna and Ant Financial would also develop new products.

Klarna, founded in 2005, is backed by rapper Snoop Dogg, U.S. venture capital firm Sequoia Capital and Australia’s biggest lender Commonwealth Bank of Australia.

Klarna CEO; Sebastian Siemiatkowski

Commenting in a statement, Klarna CEO Sebastian Siemiątkowski also said: “For too long consumers have had to endure non-intuitive, boring and overly complex services when shopping both online and offline. At the heart of this cooperation between Klarna and Alipay is a shared ambition of innovating truly superior shopping experiences and creating destinations of inspiration for consumers across the world.”

Related: Swedish fintech Klarna posts first-ever annual loss

Klarna, which describes itself as the European market leader, slid to a loss in 2019 as it invested to grow in the United States. It has launched this year in Australia and is looking to expand further in Europe.

The partnership with Ant Financial will follow that footprint but Klarna has no ambitions to enter China, said Siemiatkowski.

Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Monzo gives its lowest-paid employees £1,000 cost of living payment

Digital bank Monzo is giving staff who earn less than £40,000 per year a one-off payment of £1,000 to help them cope with the cost of living.

N26 incorporates Bizum for its customers in Spain

The N26, a German digital bank, now also integrates Bizum among its payment methods, as for example, Orange Bank did in January 2021.

Klarna is set to make second round of job cuts

Swedish BNPL company Klarna Bank AB announced it will slash jobs once again after losing $39 billion of its valuation.

Revolut has become the most searched online bank in Europe

Revolut has become the winner in a study by CMC Markets that has analysed the most heavily searched European online banks and fintechs.