Swedish Fintech Klarna funding round makes it Europe’s most valuable startup at $31bn


Swedish Fintech Klarna funding round makes it Europe’s most valuable startup at $31bn

Klarna Bank AB, commonly dubbed as Klarna, the Stockholm-based Swedish fintech company that offers online financial services, had raised a stark upsum of $1 billion in a latest fundraising campaign, springing up as the Europe’s most valuable start-up at $31 billion, the Swedish payments firm widely known for its “buy now pay later” business model said in a statement on Monday.

In point of fact, latest fundraising campaign of Klarna that has nearly tripled its market valuation to $31 billion in less than six months came against backdrop of a press agency report that had said last week that the 15-year old fintech firm had been finalizing another private fundraising round.

In tandem, having been valued at $31 billion, the Swedish “buy now pay later” fintech firm came on to a same footing with a number of Europe’s largest publicly traded financial houses, while the company’s current market valuation puts it on a par with major European financial houses such as Credit Suisse, Barclays and Swiss Re.

Besides, the Stockholm-based online payment processor has been now valued more than Deutsche Bank, the largest lender in Germany.

Klarna seeks more opportunities ahead

Meanwhile, citing a through-and-through optimism regarding the firm’s latest fundraising campaign that puts it in an alignment with a slew of major European lenders, Klarna Chief Executive Sebastian Siemiatkowski said in an interview with the reporters, “If you look at this valuation and compare it to some of the large retail banks in this whole industry, we are still a fraction of the opportunity that’s out there.

Despite questions over the fintech firm’s “buy now pay later” business model during the pandemic crisis last year, investors remained riant about the fintech firm that had raised about $650 million in another fundraising campaign in September from a group of investors led by Silver Lake and valued it $11 billion, while the latest deal in which more than 30 new and existing investors had participated, brings about a meteoric rise in valuation for Klarna.