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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

June 29, 2021
Klarna selects embedded finance platform Liberis to provide revenue-based financing to e-commerce clients.
June 10, 2021
Klarna raises $639M and has post-money valuation of $45.6B.
May 10, 2021
Klarna announces that it has launched a small business impact initiative to help small and medium-sized enterprises recover from the COVID-19 pandemic.

Klarna also recently raised $1 billion through its equity funding round to accelerate international expansion and further capture global retail growth.

April 23, 2021
Klarna announces it has teamed up with Milkywire, a new digital platform for enabling impact through grassroots NGOs, as its strategic partner for its Give One initiative.

Klarna reported that as part of the program, it will allocate 1% of its latest $1 billion funding round, a total of $10 million, to initiatives supporting conservation, mitigation, and restoration efforts for climate and biodiversity.

April 20, 2021
Klarna announces the launch of carbon footprint insights for all shopping purchases as part of its 1% pledge, involving the donation of $10 million to initiatives supporting planet health.
March 1, 2021
Klarna raises a fresh round of $1,000,000,000.
February 10, 2021
Klarna launches bank accounts in Germany. Customers living there can now open a consumer bank account and get a Visa debit card.
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.
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Funding rounds

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
Ingrid Lunden
September 9, 2021
TechCrunch
Scalapay, a buy-now, pay-later (BNPL) technology provider that has made significant headway with retailers and consumers in Europe and in categories like fashion, has closed a round of funding that it will be using to fuel its expansion ambitions. The startup has raised $155 million at a $700 million valuation. Tiger Global is leading this [...]
Reuters
August 11, 2021
The Hindu
Sweden's home computer drive, and concurrent early investment in internet connectivity, help explain why its capital Stockholm has become such rich soil for startups,birthing and incubating the likes of Spotify, Skype and Klarna,even though it has some of the highest tax rates in the world.
FinSMEs
July 11, 2021
FinSMEs
About | Advertise | Contact | Disclaimer | News | The Daily Deal Newsletter FinSMEs.com by FinSMEs is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
Karl Flinders
July 6, 2021
ComputerWeekly.com
Swedish fintech is being investigated by financial services regulator after customer information was visible to others
JD Alois
July 5, 2021
Crowdfund Insider
Click HERE to find out ⭐ Klarna Being Investigated by Regulator for Apparent Security Breach. | Crowdfund Insider: Global Fintech News, including Crowdfunding, Blockchain and more.
Matthew Staff
July 5, 2021
ComputerWeekly.com
Former Klarna employees are using their experiences with the fintech giant to create the next wave of Swedish tech startups
Omar Faridi
June 29, 2021
Crowdfund Insider
BNPL Fintech Klarna selects embedded finance platform Liberis to provide revenue-based financing to e-commerce clients.
Liberis
June 29, 2021
www.prnewswire.com:443
/PRNewswire/ -- Global embedded business finance platform Liberis has today announced it has been selected by Klarna, the leading global payments and shopping...
FinSMEs
June 23, 2021
FinSMEs
About | Advertise | Contact | Disclaimer | News | The Daily Deal Newsletter FinSMEs.com by FinSMEs is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
Tony Zerucha
June 22, 2021
Crowdfund Insider
Click HERE to find out ⭐ Klarna's Second 2021 Raise Sees Valuation Top $45B. | Crowdfund Insider: Global Fintech News, including Crowdfunding, Blockchain and more.
Scotch & Soda; Klarna
June 21, 2021
www.prnewswire.com:443
/PRNewswire/ -- Anlässlich des Weltregenwaldtages unterstützt Klarna, einer der führenden globalen Zahlungsanbieter und Shopping-Service, gemeinsam mit der...
Ram Iyer
June 15, 2021
TechCrunch
The easiest traits to recognize as an investor is the founder's ability to ace the fundraising process, crucial to which is the ability to think strategically and influence, inspire and persuade.
Annie Siebert
June 15, 2021
TechCrunch
What, exactly, are investors looking for?
Ram Iyer
June 15, 2021
TechCrunch
The easiest traits to recognize as an investor is the founder's ability to ace the fundraising process, crucial to which is the ability to think strategically and influence, inspire and persuade.
FinSMEs
June 14, 2021
FinSMEs
About | Advertise | Contact | Disclaimer | News | The Daily Deal Newsletter FinSMEs.com by FinSMEs is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
Natasha Mascarenhas
June 12, 2021
TechCrunch
In a world of talking points and corporate jargon, opinions are refreshing -- and Expensify CEO and founder David Barrett is full of them. One of his earliest lessons in life, for example, was that basically everyone is wrong about basically everything. If instilling that at a young age doesn't force you to become an [...]
Richard Dal Porto
June 10, 2021
TechCrunch
Hello friends and welcome to Daily Crunch, bringing you the most important startup, tech and venture capital news in a single package.
Crunchbase News
June 10, 2021
Crunchbase News
Crunchbase News' top picks of the news to stay current in the VC and startup world.
Mary Ann Azevedo
June 10, 2021
TechCrunch
Just over three months after its last funding round, European fintech giant Klarna is announcing today that it has raised another $639 million at a staggering post-money valuation of $45.6 billion. Rumors swirled in recent weeks that Klarna had raised more money at a valuation north of $40 billion. But the Swedish buy now, pay [...]
Karl Flinders
June 9, 2021
ComputerWeekly.com
Fintech unicorn introduces feature to its app in the UK which will challenge traditional credit card providers
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References

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