Swedish payments firm Klarna has raised $639 million from a group of investors led by SoftBank’s (9984.T) Vision Fund II, lifting its valuation to about $46 billion – higher than several of the region’s major banks.
Klarna, which allows shoppers to buy online through its merchant partners and settle their dues in installments via “buy now, pay later” (BNPL), became Europe’s most valuable startup in March when a $1 billion fundraising valued it at $31 billion.
The current round was led by SoftBank, joined by existing investors such as Adit Ventures, Honeycomb Asset Management and WestCap Group.
Klarna’s other investors include Sequoia Capital, NorthZone, Silver Lake, Dragoneer, Permira, Commonwealth Bank of Australia (CBA.AX), Bestseller Group, Ant Group (688688.SS), rapper Snoop Dogg, BlackRock (BLK.N) and Singapore’s sovereign wealth fund GIC.
Reuters reported last month that Klarna was close to raising a new round of funding at a valuation close to $50 billion.
New research from The Strawhecker Group analyzes key trends and consumer attitudes.
Consumers have increasingly adopted Buy Now, Pay Later (BNPL) services for multiple reasons; a desire for financial flexibility, a way to avoid incurring credit card debt, or to purchase items outside of their budgets. However, despite its popularity, consumer debt and missed payments have led to calls for additional research and regulation. Read the press release.
To take a closer look, The Strawhecker Group (TSG) conducted a survey of over 1,500 U.S. consumers in early 2021 with the goal of understanding domestic attitudes and perspectives on the use of BNPL services. The complete findings, a selection of BNPL provider profiles, and market landscape details can be found in the firm’s new report Buy Now, Pay Later: An Analysis of Key Trends and Consumer Attitudes.
Highlights of this extensive 81-page report include:
- Buy Now, Pay Later Background
- Key Players in the Buy Now, Pay Later Space
- Buy Now, Pay Later Consumer Survey
- Concluding Thoughts: The Future of Buy Now, Pay Later
Download a free infographic covering several findings from the full report.