Klarna

Klarna

Klarna is a financial technology company providing e-commerce payment solutions for merchants and shoppers.

Founded in 2005 by Niklas Adalberth, Sebastian Siemiatkowsky and Viktor Jacobsson, Klarna is an online payment service aiming at removing the risk of online purchases from customer and store.

Unlike PayPal or traditional credit cards, Klarna users don't have to create an account or enter financial details when checking out in an online store. They can enter as little as an email address and zip code and pay Klarna later.

Klarna has the benefit of data - what device a user is on, what time of day they are making the purchase and the item in question to determine the risk of supplying credit. They achieve this in part with Klarna Checkout, which handles the entire transaction.

Klarna offers users a "buy now, pay later" experience. They allow users to pay in installments over time with zero interest. Their fees are charged to the retailer. This motivates user to purchase by reducing friction at checkout. When users fail to pay, Klarna passes the accounts to debt collection agencies. Late or missed payments also negatively affects users credit scores.

Acquisitions
Sofort AG

Klarna acquired Sofort AG in 2013, which provided online payment solutions for buyers and merchants in Europe. This acquisition gave Klarna 10% market share in Europe's $100 billion e-commerce market.

Cookies App

Klarna acquired Cookies App in 2016. Cookies App was acquired a few weeks after they announced they were shutting down. The acquisition was largely for the team behind Cookies App.

BillPay

In 2017, Klarna acquired BillPay. BillPay was a German payments company, purchased by Klarna from their previous owner, Wonga, and helped build a stronger presence in European payments for Klarna.

ShopCo Technologies

In May, 2018, Klarna acquired ShopCo Technologies. ShopCo offered a free Universal Cart browser extension which allowed users to purchase with a single click. Klarna discontinued the browser extension with their acquisition.

Close Brothers Retail Finance

In September of 2018, Klarna acquired Close Brothers Retail Finance and boosted their position in the UK. Close Brothers Retail Finance provided omni-channel retail finance and allowed shoppers to pay in simple, flexible monthly payments. They worked to convert more browsers into buyers. Their integration into Klarna allowed them to develop further and provide more value to merchants.

Funding
Seed

Jane Walerud, running into Niklas, Sebastian and Viktor at a networking even in 2005, financed Klarna for 60,000€. In return she took 10% of the company. She offered to connect them with an engineering team for 37% of the company.

Series A

In December 2007, Klarna raised $2.2 million from their Series A. Investors included Investment AB and Öresund.

Series B

In May 2010, Klarna raised $9 million from Sequioa Capital.

Series C

In December 2011, Klarna raised $155 million. Investors included General Atlantic and DST Global.

Debt financing

In 2016, Klarna tapped debt markets for $35.2 million to support expansion into the U.S. and diversify funding.

Late VC

In March, 2017, Creandum bought shares for SEK 46 million in Klarna to aid in the acquisition of BillPay.

Secondary Market

Anders Holch Povlsen, in June 2017, announced, with Klarna, a purchase of at least 10% of Klarna. He bought shares from existing investors General Atlantic, DST Global and co-founder Niklas Adalberth.

Visa made an equity investment in Klarna at the same time. Neither party disclosed the size of the stake. This came a week after Klarna recieved a banking license and re-branded as Klarna Bank.

A month later, in July, Klarna announced funding from Permira for around 10% and reported between $225-250 million.

Corporate Round

In October 2018, Klarna announced a $20 million investment from H&M which saw Klarna build an omni-channel payment service spanning H&M's physical and online stores.

In January 2019, Snoop Dogg became a minority investor in Klarna and the face of their Smoooth campaign. The campaign saw Snoop Dogg change his name to Smoooth Dog.

Private Equity Round

In April 2019, Klarna raised $93 million from existing investors. These include approximately 90 persons and companies.

Venture Round

In August 2019, Klarna raised $460 million. Dragoneer Investment Group led the round. Other investors included Commonwealth Bank of Australia, HMI Capital LLC, Merian Chrysalis Investment Company Limited, Första AP-Fonden (AP1), IPGL, IVP and BlackRock managed funds. This funding pushed Klarna to a $5.5 billion valuation.

Timeline

November 30, 2020
Klarna launches Livestyle, a live fashion show powered by Bambuser's Live Video Shopping.

November 19, 2020
Klarna announces that it has expanded its in-store payment services to more than 60,000 stores nationwide, including top retail brands such as H&M, O.N.S. Clothing, The North Face and Timberland.

June 11, 2020
Klarna partners with Raisin to launch Cooperation in Germany.
June 8, 2020
Klarna announces it has reached a record 7.85 million U.S. customers.
May 28, 2020
Klarna makes debut in Belgium by introducing "Pay in 21 Days" Service
March 4, 2019
Today, Klarna, a global payment provider, announces a partnership with Canadian instant financing provider, PayBright.
2014
Klarna launches in the UK.
May 4, 2010
Klarna raises a $9,000,000 series B round from Sequoia Capital.
December 1, 2007
Klarna raises a $2,200,000 series A round from Investment AB Öresund.
January 1, 2005
Klarna raises a $80,000 seed round from Jane Walerud.

Funding rounds

Funding round
Funding type
Funding round amount (USD)
Funding round date
Investment
Klarna funding round, August 2019
460,000,000
August 2019
5 Results
Results per page:
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Products

Product
Website
Industry
Launch date
wavy (app)
1 Result
Results per page:
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People

Name
Role
LinkedIn

Niklas Adalberth

Co-Founder

barbaros özbugutu

Employee

Carlo Segato

Employee

Carol Hargrave

Employee

Colin Treseler

Employee

Daniel Dudek

Employee

Daniel Kalman

Employee

Daniel Luna

Employee

Danny Crook

Employee

Dirk Meij

Employee

Erik Stenman

Employee

Fabian Linzberger

Employee

Felicia Würtenberger

Employee

Greg Clayman

Employee

Håkan Nylén

Employee

Hass Chapman

Employee

Henrik Nilsmo

Employee

Joseph Hajj

Employee

Josh Glover

Employee

Justin Drees

Employee

Klaus Hommels

Investor

Knut Nesheim

Employee

Leandro Ostera

Employee

Louise Dahlborn Samet

Employee

Lukas Duczko

Employee

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Further reading

Title
Author
Link
Type
Date

Documentaries, videos and podcasts

Title
Date
Link

Companies

Company
CEO
Location
Products/Services

News

Title
Author
Date
Publisher
Description
Dan DeFrancesco and Jordan Parker Erb
April 12, 2021
Business Insider
The top finance stories for April 12, including the latest news on the difficult March Gabe Plotkin's Melvin Capital had.
Hayley Cuccinello
April 10, 2021
Business Insider
"Buy now, pay later" spending has surged during the pandemic, propelling fintechs like Klarna. One of its founders doesn't think this is a good thing.
Hayley Cuccinello
April 8, 2021
Business Insider
Niklas Adalberth, cofounder of the "buy now, pay later" startup, Klarna, explains why he stepped away from his role and missed out on billions. "I really want to be able to look myself in the mirror and see that I've created something net-positive," he told Insider.
Molly Innes
April 8, 2021
Business Insider
Klarna's new influencer council brings together industry experts like PrettyLittleThing's marketing director Nicki Capstick and influencer Amelia Liana.
Bill Leaver and Freya Pratty
April 7, 2021
Sifted
It's set to be a blockbuster year for IPOs, with 40 European companies on the cards -- here are the biggest fintechs about to list.
Kai Nicol-Schwarz
March 17, 2021
Sifted
7 European VCs pick out the once-upon-a-time entrepreneurs that are catching their eye on the investing scene in 2021.
By Leanna Byrne & Felicity Hannah
March 10, 2021
BBC News
The boss of the payments firm says it upsets him when the company is compared to Wonga.
Joanna Glasner
March 5, 2021
Crunchbase News
We often see startups fail because they have too much crazy and not enough genius. Or too much genius, and not enough crazy. Snoop Dogg's portfolio, on the other hand, seems to have an ample dose of both.
Adriana Nunez
March 2, 2021
Business Insider
Klarna plans to put its recent funding toward tech acquisitions that'll enhance offerings and enable it to compete against credit card companies.
Anthony Ha
March 1, 2021
TechCrunch
A challenger bank raises funding at a massive valuation, Instagram adds Live Rooms and Google updates Workspace. This is your Daily Crunch for March 1, 2021. The big story: Klarna valued at $31B The Swedish challenger bank and buy-now-pay-later (BNPL) service has raised $1 billion at a post-money valuation of $31 billion. Klarna says it [...]
Crunchbase News
March 1, 2021
Crunchbase News
Crunchbase News' top picks of the news to stay current in the VC and startup world.
Dan Taylor
March 1, 2021
Tech.eu
Klarna, which recently hit 18 million monthly users and whose operating income rose 40% in 2020, has recently announced a fresh injection of $1 billion in an equity funding round. This cool pile of cash is expected to accelerate international expansion and further capture global retail growth. This 4x oversubscribed round included a combo of [...]
Steve O'Hear
March 1, 2021
TechCrunch
Klarna, the Swedish buy now, pay later behemoth and upstart bank, has raised $1 billion in new funding at a post-money valuation of $31 billion. That sees the company retain the crown as the highest valued private fintech in Europe. Backers of this round are said to be combination of new and existing investors, while [...]
Reuters
March 1, 2021
@bsindia
It also puts the Swedish fintech on a par with many of Europes biggest listed financial houses
Freya Pratty
March 1, 2021
Sifted
Swedish buy-now-pay-later firm Klarna has closed a $1bn private fundraising round, bringing the company a $31bn valuation.
Kate Duffy and Reuters
March 1, 2021
Business Insider
Klarna raised $1 billion at a valuation of $31 billion. The fundraising round included both existing and new investors.
Steve O'Hear
March 1, 2021
TechCrunch
Klarna, the Swedish buy now, pay later behemoth and upstart bank, has raised $1 billion in new funding at a post-money valuation of $31 billion. That sees the company retain the crown as the highest valued private fintech in Europe. Backers of this round are said to be combination of new and existing investors, while [...]
Klarna Bank AB
March 1, 2021
www.prnewswire.com:443
/PRNewswire/ -- Klarna, a leading global retail bank, payments and shopping service, today announced it has secured $1 billion USD in an equity funding round...
Alex Wilhelm
February 26, 2021
TechCrunch
To better understand what's going on with the companies hoping to help you finance your next mistaken purchase, let's check out earnings results from Klarna, Afterpay and Affirm.
Robin Wauters
February 25, 2021
Tech.eu
Klarna, the Swedish payments company that was Europe's most valuable private fintech firm until Checkout.com overtook it late last year (though it will soon again take that crown from what we've heard), this morning reported its annual financial results. The 'buy now, pay later' company reported a 40% increase in net operating income in 2020, [...]
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References

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