8.6 C
New York
Thursday, May 26, 2022
Home Fintechs Klarna is looking to raise $500 million and double valuation to $10bn

Klarna is looking to raise $500 million and double valuation to $10bn

The Swedish fintech unicorn Klarna asked investors for a new round of funding. This one would set the company’s value to $10 billion.

If Klarna’s attempt is successful it could once again become Europe’s highest valued fintech. Three sources said to Reuters that the goal is to expand Klarna’s business in the United States.

Read also: Swedish unicorn Klarna reports increase in net losses

The investors that Klarna is already counting on are Sequoia Capital, Bestseller, Dragoneer, and Commonwealth Bank of Australia.

The buy now, pay later giant is currently worth $5.5bn. After the $460m fundraise last year that Klarna secured, the company claims to have about 85 million customers and 235,000 merchant partners.

Although the BNPL giant is growing immensely and has recorded growth despite the lockdown last year has not been as successful for the company.

Since the launch of Klarna in 2005 the company has been profitable each year. However, the profit of $10m in 2018 turned into a loss of $93m last year.

The main reason for that was Klarna’s push for the US expansion. As Di Digital reported, Klarna’s goal was to show around €100m of revenue in the US in 2017 but didn’t reach a fraction of that. That year, Klara also laid off half its American workforce.

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

Recent posts

Money 20/20: speakers and agenda

With 4,000+ attendees from 1,900+ companies and 3,100+ IRL meetings booked in 2021, Money 20/20 proved yet again that this is the fintech industry’s premier conference.

Revolut CEO Nik Storonsky launches his AI-based venture capital fund

Billionaire Nik Storonsky, the co-founder of Revolut, one of Europe's largest and richest startups, plans to launch his own AI-based venture capital fund to compete with legacy venture capitalists.

This is how Klarna will merge e-commerce with physical shopping

Klarna launches "virtual shopping" where online shoppers get access to experts in physical stores.

Revolut reached 1.7 million Irish customers

Of the 5 million population, 1.7million people from Ireland use Revolut to some extent.