No data to display.

Klarna to reach valuation of $40 billion after expected funding round

By Shubhangi on May 28, 2021 | 03:38 AM IST

Softbank.png

A European buy-now-pay-later company, Klarna, is almost about to secure a new funding round at a valuation of more than $40 billion, said a source familiar to the matter.

CNBC reported that Softbank and other investors are backing the investment, according to the source.

Though the exact figure of the investment round is not disclosed, it is expected to be less than $1 billion which the buy-now-pay-later company raised when it was valued at $31 billion.

SoftBank’s website lists Klarna as a portfolio company through its Vision Fund 2. The company is also supported by investors such as Snoop Dogg and Ant Group.

Klarna was founded more than a decade ago and has been successful in spreading in US as well. Last year, when people preferred shopping online due to coronavirus pandemic, it got a big boost as demand for buy-now-pay-later plans surged.

But with the growth of the company, the buy-now-pay-later sector has also come under scrutiny from UK regulators.

“We are, with this product, challenging a massive industry that has overcharged consumers with overdraft fees, with interest bearing terms of use,” Siemiatkowski told CNBC in February. “There’s a lot of misconceptions in the U.K., but when we get the chance to sit down with U.K. politicians ... they get convinced and then they switch sides.”

(With inputs from CNBC)

Picture Credits: CNBC

Stock View