8.6 C
New York
Friday, May 7, 2021
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.

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

Recent posts

Bunq exceeds €1 billion in user deposits

Dutch neobank bunq hits the billion mark in deposits and is offering German account numbers for the first time.

Leaked Revolut blog post announces Bitcoin withdrawal option

Revolut mistakenly announced that premium customers will be able to transfer Bitcoin (BTC) from the platform to external wallets.

Starling becomes second most switched-to bank in UK

Starling Bank has the most switched-to digital-only bank and the second most switched-to bank in the final quarter of 2020.

Lunar acquires Swedish Lendify

Danish Lunar Group acquires the Swedish loan and savings platform Lendify to strengthen the private loan business.