Klarna has raised $650 million in an equity funding round, at a post money valuation of $10.65 billion.

This ranks the buy now, pay later specialist as the highest-valued private FinTech in Europe and now the fourth highest worldwide.

The investment was led by Silver Lake, alongside Singapore’s sovereign wealth fund GIC and funds managed by BlackRock and HMI Capital. Concurrently, Merian Chrysalis, TCV, Northzone and Bonnier have acquired shares from existing shareholders.

They join current investors Sequoia Capital, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group and Ant Group.

The funding will help Klarna continue to grow its global presence, especially in the US, where the company now has more than nine million consumers.

Klarna’s direct to consumer app, which enables users to shop at any store or brand online with instalment payment options, now has more than 12 million monthly active users worldwide, with 55,000 daily downloads.

In the app, consumers can also now wishlist their favourite items, access unique discounts, set up price-drop notifications and track spending and deliveries. The app also features the world’s first buy now, pay later shopper loyalty program, Vibe, which rewards consumers who pay on time, to encourage responsible spending. Vibe is currently available to consumers in the US and will soon be launched in additional markets.

In the context of the current accelerated switch to online retail and evolving consumer preferences, Klarna stated that it has seen a surge in demand, adding more than 35,000 new retailers during the first half of 2020 to its network of more than 200,000 retail partners, including Sephora, Groupon, SHEIN, Charlotte Tilbury, Vans, The North Face, Ted Baker, Timberland and Ralph Lauren.

Sebastian Siemiatkowski, co-founder and chief executive of Klarna, said: "The shift to online retail is now truly supercharged and there is a very tangible change in the behaviour of consumers who are now actively seeking services which offer convenience, flexibility and control in how they pay and an overall superior shopping experience.”

Jonathan Durham, managing director of Silver Lake, added: “Klarna is one of the most disruptive and promising FinTech companies in the world, redefining the e-commerce experience for millions of consumers and global retailers, just as e-commerce growth is accelerating worldwide and rapidly shifting to mobile."

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