Klarna, a leader in the buy now, pay later (BNPL) sector, has successfully secured a funding round totaling $1 billion, elevating the company’s valuation to an impressive $31 billion.
The round saw significant interest, being oversubscribed fourfold, and included contributions from both new and existing investors. This achievement positions Klarna as the highest-valued private fintech company in Europe and the second largest globally.
This latest investment follows a $650 million funding round just six months ago, which established Klarna’s valuation at $10.65 billion. The surge in funding reflects the booming BNPL market; Klarna reported a remarkable 46% year-on-year growth in global transaction volume for 2020, reaching over $53 billion, with revenues growing by 40% to exceed $1 billion.
In addition to expanding its financial resources, Klarna is committed to addressing global sustainability challenges, pledging to allocate one percent of the funds raised toward this initiative. Co-founder and CEO Sebastian Siemiatkowski emphasized the industry’s role in tackling these important issues, expressing hope that other companies will join Klarna in this effort.