Klarna to reach valuation of $40 billion after expected funding round
By Shubhangi on May 28, 2021 | 03:38 AM IST
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