The European fintech Klarna has confirmed the closing of a new round of financing in which it has reached 800 million dollars. However, this means for the brand a drop in its valuation of 85%which leaves your vvalue in 6.7 billion of dollars.
The round includes a host of new and existing investors, including Sequoia, Silver Lake, Commonwealth Bank of Australia, UAE sovereign wealth fund Mubadala Investment Company and Canada Pension Plan Investment Board (CPP Investments).
Always look on the bright side
However, the firm has wanted to keep the positive part and that is that they have achieved, as they explain in their releaseclose the largest round of financing since the worst stock drop in 50 years. To confirm this, the company has shared a Klarna valuation comparison from 2018.
Klarna’s ratings in recent years have been:
- In 2019 it had a valuation of $5.5 billion.
- In 2020 it was 10.6 billion dollars.
- In 2021 it reached 31,000 million dollars.
Sebastian Siemiatkowski, CEO of Klarna, stated: “It is a testament to the strength of Klarna’s business that, during the steepest downturn in global stock markets in over fifty years, investors recognized our strong position and continued progress in revolutionizing the retail banking industry. Now more than ever, companies need a strong consumer base, a superior product and a sustainable business model.”
Some of Klarna’s achievements
- In the US, Klarna has gone from nothing to become the market leader with nearly 30 million users, 60% brand recognition and 30 of the top 100 US retailers more than Affirm and Afterpay combined. Volumes more than tripled year over year between 2020 and 2021.
- Klarna has launched 11 new markets during this time period, including France, Italy, Spain, Canada and Australia. Which makes it the number one choice for global brands worldwide, covering more than 20 markets.
- Globally, it is now bigger than Amex with 150 million users worldwide, uses Klarna 2 million times a day and app downloads over 60 million.
- Volume has grown in the UK close to 8x since 2018, reaching 18 million consumers from just 4 million in 2018, an increase of 333%, with 22,000 retail partners.
- Our established European markets are generating $1 billion in gross profit. This parallels putting $100 million back into consumers’ pockets by lowering our rates in the last 12 months.