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PR Newswire
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(1)

Klarna CEO challenges tech to focus on global sustainability in $1 bn funding round

NEW YORK, March 1, 2021 /PRNewswire/ -- Klarna, a leading global retail bank, payments and shopping service, today announced it has secured $1 billion USD in an equity funding round to accelerate international expansion and further capture global retail growth. The 4x oversubscribed round included a combination of new and existing investors and closed at a post-money valuation of $31 billion USD, making Klarna the highest-valued private fintech in Europe and the second highest worldwide(1).

Klarna is also proud to announce the company will pledge 1% of the capital raised to a newly created initiative that focuses on key sustainability challenges around the world. The initiative will be formally launched April 22 on World Earth Day.

Sebastian Siemiatkowski, co-founder and CEO of Klarna:"At Klarna, we solve problems - that is the heart of what we do for both consumers and retailers. Consumers want transparent products to help them bank, shop and pay that reflect the way they live their lives, not just outdated traditional models. Each and everyone of us at Klarna will continue to work hard on this, but it is also time for us, with our culture of change, disruption and innovation, to focus on tackling bigger, more complex issues. I believe our industry has a responsibility to help in some way solve global sustainability issues and I hope others will join Klarna in our ambition."

Klarna enables consumers to shop, pay and bank in a smarter way, designed to fit the lives they lead, not the requirements of the traditional payments and banking industry. The ongoing structural shift of consumers actively moving away from revolving credit lines to debit means Klarna's healthier and simpler alternatives, which put consumers in control of their finances, are closely aligned to evolving global consumer preferences and drive global growth.

In 2020, the Klarna app was consistently ranked among the Top 10 app downloads in the United States, proving Klarna's ability to elevate the mobile shopping experience. Consumers can browse and shop at any brand online with Klarna payment options, track spending and available balances, add favorite items to wishlists, access tailored discounts, receive price-drop notifications, track deliveries intelligently and join Klarna's new loyalty program, Vibe.

Consumers now expect the convenience and flexibility of the online experience everywhere. Klarna's global platform, supported by it's app, makes this transition between channels seamless for consumers, always delivering a personalised and engaging service. With global retail sales expected to reach $27 trillion by 2022 (2) Klarna is uniquely placed to meet the continued accelerated demand both online and in-store. Klarna's more than 250,000+ retail partners including Macys, Etsy, Sephora, Ralph Lauren and Urban Outfitters are offering our services across channels. In all, this is reflected in the continued strong business results for Klarna: volume and revenue for 2020 grew 46% and 40% year-on-year to more than $53 billion and $1 billion respectively.

(1) https://www.cbinsights.com/research-unicorn-companies

(2) Statista, Juy 2020

Notes to editors

You can find a video from Klarna CEO Sebastian Siemiatowski relating to the equity raise and new sustainability initiative here

For broadcast quality or embedded video, please contact press@klarna.com

For additional information, please contact:

Aoife Houlihan, VP of Communications
Phone: +46 (0) 72855 8047
Email: aoife.houlihan@klarna.com / press@klarna.com

This information was brought to you by Cision http://news.cision.com

The following files are available for download:

https://mb.cision.com/Public/1740/3297698/9fd6c2d4ab65f2a9_org.png

Us app

https://mb.cision.com/Public/1740/3297698/a3a28b345c100b97_org.jpg

Sebastian Siemiatkowski CEO Klarna

© 2021 PR Newswire
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