Klarna has raised $800 million in financing at a $6.7 billion post-money valuation from new and existing investors to grow its position in the United States.
“It’s a testament to the strength of Klarna’s business that, during the steepest drop in global stock markets in over 50 years, investors recognized our strong position and continued progress in revolutionizing the retail banking industry,” Klarna CEO Sebastian Siemiatkowski said in a Monday (July 11) press release. “Now, more than ever, businesses need a strong consumer base, a superior product, and a sustainable business model.”
Earlier this month, Klarna said it was seeking new capital despite the weak environment. While the company was valued at $45.6 billion last year, it was reduced to a $15 billion valuation in June.
Read more: Klarna Goes Shopping for Capital at $6B Valuation
Klarna said in the release its current valuation is still “3x times higher than back in 2018” and has outperformed its “public peers for the same time period.”
Existing investors included Sequoia, the founders, Bestseller, Silver Lake and Commonwealth Bank of Australia, according to the release. New investors included the Mubadala Investment Compan and the Canada Pension Plan Investment Board.
“The shift in Klarna’s valuation is entirely due to investors suddenly voting in the opposite manner to the way they voted for the past few years,” Sequoia Partner Michael Moritz said in the release.
BNPL solutions are the fastest-growing online payment method in the U.S., Australia, Brazil, the United Kingdom and many other countries, and their market share projected to realize a global transaction value of $656 billion by 2026.
See more: Exploring Varying Uses of BNPL Options Among Generations and Income Groups
The payment method’s popularity varies significantly by generation, however, with younger consumers, such as millennials and Generation Z, currently outstripping older cohorts, such as Generation X and baby boomers, in BNPL use.
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