• Home
  • News
  • Retail
  • Klarna is ranked the highest private fintech in Europe

Retail

Klarna is ranked the highest private fintech in Europe

By Andrea Byrne

15 Sep 2020

Klarna has been valued at 10.65 billion dollars in its latest equity finding, after raising 650 million dollars in its financing round.

The payment and shopping service is now the highest-valued private fintech in Europe, and the fourth highest fintech worldwide.

The round was led by Silver Lake Partners, alongside BlackRock, HMI Capital and GIC, Singapore’s sovereign wealth fund.

The app currently has more than 12 million monthly active users worldwide and has 55,000 downloads daily.

In the first half of 2020, Klarna experienced a strong growth with 35,000 new retailers joining the network of 200,000 brands such as Charlotte Tilbury, Timberland, The North Face and many more.

A recent study by McKinsey & Company in the US, found that more than 75 percent of consumers tried new brands, channels or shopping methods during the Covid-19 pandemic and 82 percent of those surveyed have tried a new digital way of shopping and continue to do so.

Klarna recorded volume and sales growth of 44 percent and 36 percent respectively in the first half of 2020. It processed more than 22 billion dollars through its app and generated a total sales of 466 million dollars.

Sebastian Siemiatkowski, co-founder and CEO of Klarna, said in a statement: "We are at a real turning point in both retail and the financial industry. Online trading is becoming more and more important and there is a noticeable change in consumer behavior. You are looking for actively looking for services that offer convenience, flexibility and control when paying and an overall better shopping experience.

“Our unique offer, the changing demands of users and our global dealer network provide an excellent basis for further growth. The entire Klarna team is honored to have such well-known investors on board to support our mission to become the world's most popular way of shopping.”

Klarna recently launched its redesigned app that combine wish lists, inspiration and price alerts under one banner.

Photo credit: Klarna