Klarna announces $460M equity raise to further support massive US growth
07/08/2019
This funding will help Klarna to continue its rapid rise in the US market, where it is currently growing at an annual rate of 6 million new US consumers. The uniqueness of Klarna's consumer offering, providing a healthier, simpler and smarter alternative to credit cards, with the addition of multiple services to smoothen the shopping experience, online and offline, is clearly resonating with the US consumer. This is as consumers are turning away from revolving credit lines towards alternative and more flexible financing alternatives. Most importantly, Klarna's recently launched shopping app which allows its users to shop with Klarna at any store or brand online has been received very positively, with 3x more daily downloads than any of our direct competitors and with now more than 50% of the app users purchasing each week.
Klarna has also seen a surge in merchant demand for its services. Klarna is now powering over 3000 merchants in the US - including rue21, ASOS, Lulus, Toms, Superdry, Sonos and Acne Studios - and helping them increase new consumer acquisition, average order value, and retention. The business results are strong, with merchants who are offering Pay in 4' reporting a 68% increase in average order value, a 44% increase in conversion compared to cards and 21% higher purchase frequency. Global brands H&M, Abercrombie & Fitch and Boohoo Group will soon go live with Klarna and there are currently more than a 1000 merchants integrating with Klarna with a combined volume of $10bn. The momentum of acquisition continues and in July a record number of new merchants signed with Klarna in the US.
Klarna's footprint continues to grow, now serving over 60 million consumers, 130,000 merchants partners, 1 million transactions daily and is in sight of a $1 billion annual revenue. We are therefore delighted to announce that with the participation of the Commonwealth Bank of Australia, Australia's largest retail and commercial bank, in the equity round, we have also agreed to establish an exclusive partnership for the Australian and New Zealand markets.
The funding round was led by Dragoneer Investment Group, a leading San Francisco based growth-oriented investor. Other investors in the round include Commonwealth Bank of Australia, HMI Capital LLC, Merian Chrysalis Investment Company Limited, F rsta AP-Fonden (AP1), IPGL, IVP and funds and accounts managed by BlackRock. This investment follows a funding round in April of this year that closed above the company's $100 million target, driven by strong demand from Klarna's existing investor base.
Sebastian Siemiatkowski, co-founder and CEO of Klarna: This is a decisive time in the history of retail banking. Finally, transparency, technology, and creativity will serve the consumer, and there will be no more room for unimaginative products, non-transparent terms of use or lack of genuine care of one's customers. We, all 2500 of us at Klarna, are humbled and honored, and now also further empowered, to play a role in this improvement of an industry for the benefit of the consumer, worldwide and in the US in particular.
Marc Stad, Founding Partner at Dragoneer: Our strategy is to partner with a small number of disruptive, growth companies that are highly differentiated and run by world-class management teams. Sebastian and the Klarna team have built an exceptional payments business with a global footprint, operating in a huge addressable market with strong tailwinds.
Richard Watts, Merian Chrysalis Investment Company: Klarna has built a highly-impressive, digital payment ecosystem, trusted by both retailers and consumers. By simplifying and improving the flexibility of the payments process, retail partners working with Klarna have seen considerable improvement in customer engagement and sales. Klarna is one of Europe's great fintech success stories and the company continues to develop truly innovative payment solutions. This latest funding round will enable the company to execute on its ambitious international growth plans.
Numis acted as exclusive financial advisor and placement agent to Klarna.
***********************************************
About Klarna
Klarna is leading global payments providers and fully licensed bank, which wants to revolutionize the payment experience for shoppers and merchants alike. Founded in Stockholm, Sweden, in 2005, we give online consumers the option to pay now, pay later or over time - offering a simple, safe and smooth checkout experience. Klarna now works with 130,000 merchants including H&M, Adidas, IKEA, Expedia Group, ASOS, Pelotan, Abercrombie & Fitch, Michael Kors, Nike, AliExpress, Superdry, Sephora, Spotify, Wayfair, Gymshark, Samsung, Zara, Topshop, The Hut Group, Steve Madden, Boozt, Daniel Wellington, Bugaboo, Rue21, TOMS, Sonos, Agent Provocateur, Lufthansa, ETSY, ACNE Studios, Daniel Wellington, KLM, Turkish Airlines and many more. Klarna has 2,500 employees and is active in 14 countries. Klarna has been backed by Sequoia Capital since 2010 and more recently, Bestseller Group, Permira, Visa, and Atomico.
LINK: | https://www.ivp.com/news/press-release/klarna-announces-460m-equity-ra... |
See more stories from ivp |
More from IVP
21/02/2023
Scaling Your Product Organization
Part 1: Hiring Scaling a business for long-term success is hard - and so is finding the guidance, insight and lessons learned by those who have done it successf...
11/01/2023
DeepL: A step change in AI-powered language translation
By Eric Liaw, Karthik Ramakrishnan, Ajay Vashee and Albert Zhang, on behalf of IVP As our world becomes more interconnected, demand for high-quality language t...
02/11/2022
Roam, The Future of Remote Work
By Jules Maltz, Dennis Phelps and Shreyas Garg The shift to remote work and a geographically dispersed workforce has given companies and employees greater flex...
18/10/2022
Jasper: This Blog Post (Mostly) Wrote Itself
By Karthik Ramakrishnan, Jules Maltz, Ajay Vashee, Michael Miao and Joanne Shang, with help from Jasper.ai Every day, billions of people start their workdays t...
29/09/2022
Pigment: The true colors of next-gen business planning
By: Ajay Vashee, Somesh Dash, Michael Miao, James Black Business growth is often a function of planning and forecasting - financial, resource, product, sales, ...
15/08/2022
IVP in the Wall Street Journal: Navigating Tech Hiring
After a period of record growth, the tech sector's hiring spree seems to be coming to a close. Rising inflation and slowing demand for tech products are lea...
29/07/2022
7 Ways Founders Lead in Uncertain Times
By Somesh Dash The bear market is roiling venture capital, but the people feeling the most pressure nowadays are founders and CEOs seeing their terms change, v...
29/07/2022
Why I stopped writing, and how I found my voice again
By Cack Wilhelm Writing my way made me a better investor and partner to founders Writing, like running, is often used as an example of operating in a flow sta...
28/07/2022
BreakLine Education and IVP Team Up to Advance High Performing Talent in High Growth Companies
We are thrilled to announce a first-of-its-kind partnership between BreakLine Ed...
06/06/2022
Why you should pledge 1%
IVP recently convened a virtual roundtable of founders and CEOs to learn more about Pledge 1% and consider joining the thousands of companies that have already ...
24/05/2022
The Data Doesn't Lie: Monte Carlo and the Future of Data Observability
By Jason Kong, Cack Wilhelm, Karthik Ramakrishnan, Somesh Dash, and Tom Loverro We're thrilled to announce our investment in data observability company Mo...
03/05/2022
Traceable AI: A Revolutionary Approach to API security
By: Steve Harrick, Somesh Dash, Michael Miao, and Shreyas Garg Application Programming Interfaces (APIs) are at the forefront of software communication, workin...
19/04/2022
SEON: Kicking Fraud's Butt
By Michael Miao, Karthik Ramakrishnan, Jules Maltz, and Eric Liaw Cat and Mouse The cartoon classic Tom and Jerry tells the story of two lifelong adversari...
18/04/2022
Clipboard Health: Doing Well by Doing Good
By: Louisa Xu, Army Tunjaicon, Jules Maltz, and Tom Loverro Not many founders dedicate their lives to lifting people up the socioeconomic ladder. Wei Deng i...
14/04/2022
Obsidian and an Industry Shift
By Somesh Dash, Joanne Shang, Shreyas Garg and Cack Wilhelm IVP is proud to announce our investment in Obsidian Security, the first truly comprehensive securi...
08/03/2022
IVP stands with Ukraine
We have been shocked to witness the Russian government's horrific invasion of Ukraine unfold. At IVP, we stand in solidarity with Ukraine and condemn Russia...
14/02/2022
Inspirato: Reimagining Luxury Travel
By Todd Chaffee Today we are honored to congratulate CEO Brent Handler, President David Kallery, and the entire team at Inspirato on a successful public listi...
07/02/2022
The Starting Line
A post by Cack Wilhelm There is a Silicon Valley maxim often shared with entrepreneurs entering their public debut: the IPO is not the conclusion. It is the st...
07/02/2022
IVP Promotes Cack Wilhelm to General Partner
Menlo Park, CA - February 7, 2022 IVP, a seasoned, trusted, and understated partner for many of the technology industry's fastest-growing companies, is p...
22/12/2021
Cack Wilhelm Named on the GrowthCap's Top 40 Under 40 Growth Investors of 2021 List
Menlo Park, CA December 22, 2021 IVP is pleased to announce that Cack Wilhel...
16/12/2021
IVP 2021 in Review - Breakout Performance with 15 IPOs and $1.8 Billion Fund to Serve Hypergrowth Companies
Menlo Park, CA - December 16, 2021 - IVP shared a summary of key milestones for ...
16/12/2021
Found raises $100M in Series B funding led by WestCap
In addition to new funding, Found welcomes Chief Medical Officer and Chief Behavioral Health Officer San Francisco, CA December 16, 2021 Found, the modern ...
16/12/2021
Found: It's not just about what you lose, it's about what you find
By Jules Maltz, Joanne Shang, and Eric Liaw IVP is excited to announce our investment in Found, a digital-first weight care management company. At IVP, we are ...
14/12/2021
IVP's Hypergrowth Stories: How Attentive Changed the Conversation Between Companies and Customers
In IVP's Hypergrowth Stories series, CEOs of the fastest-growing companies s...
09/12/2021
HashiCorp: The Dawn of HCP
By Tom Loverro, Sandy Miller, Steve Harrick, and Michael Miao Congratulations to HashiCorp CEO Dave McJannet and founders Mitchell Hashimoto and Armon Dadgar a...
18/11/2021
Grammarly Reaches $13B Valuation With New Funding Round to Accelerate Communication Assistance Market Leadership
$200M round, including new investors Baillie Gifford and funds and accounts man...
16/11/2021
H1 Raises $100M Series C to Expand Footprint, Make H1 the Central Healthcare Professional Data Network for Global Healthcare Community
Led by new investor Altimeter Capital, round will help H1 increase velocity of g...
16/11/2021
IVP's Hypergrowth Story: How Amplitude Became the #1 Product Analytics Company and Will Optimize Digital Business
In IVP's Hypergrowth Stories series, CEOs of the fastest-growing companies s...
16/11/2021
IVP's Hypergrowth Stories: How Amplitude Became the #1 Product Analytics Company and Will Optimize Digital Business
In IVP's Hypergrowth Stories series, CEOs of the fastest-growing companies s...
15/11/2021
Podium Raises $201M in Series D Funding to Accelerate the Digital Evolution for Local Businesses
Additional Funding to be Invested Towards Future Growth and Innovation to Suppor...
11/11/2021
From #lovelulus to LVLU Lulus Goes Public!
By Jason Kong, Eric Liaw and Jules Maltz Today we are honored to congratulate the fashionable and amazing team at Lulus on a successful IPO. This marks the 129...
08/11/2021
Nextdoor: The Neighborhood Network
By Jules Maltz Today, we're honored to congratulate Sarah Friar and the entire team at Nextdoor on its successful public listing. Neighbors rely on Nextdoo...
04/11/2021
Yellowbrick Data Raises $75M in Series C1, Sees Adoption of Its Cloud Data Warehouse Accelerating
Yellowbrick adds investment as it attracts host of new enterprise customers to t...
04/11/2021
NerdWallet: Financial Empowerment? Turn to the Nerds
By Tom Loverro, Jules Maltz, Eric Liaw and Cack Wilhelm We're thrilled to congratulate Co-Founder & CEO, Tim Chen and Co-Founder, Jake Gibson, and the ent...
25/10/2021
IVP's Hypergrowth Stories: How Grammarly Got to 30 Million Daily Active Users
In IVP's Hypergrowth Stories series, CEOs of the fastest-growing companies s...
21/10/2021
FTX Trading Ltd. Closes $420 Million Series B-1 Funding Round
This Financing Round Raises the Company's Valuation to $25 Billion Nassau, Bahamas Oct. 21, 2021 FTX Trading Ltd. ( FTX or the Company ), owner and o...
19/10/2021
Aiven Achieves $2B Unicorn Valuation with its Series C Extension
Aiven's existing investors increase capital investment to double down the company's exponential growth and global open source innovation Helsinki, Finl...
14/10/2021
Tala Raises $145 Million Series E to Become Largest Financial Platform for the Global Underbanked
The round will fuel the rollout of new mobile-first account services and crypto ...
07/10/2021
Ajaib: Democratizing Investments in Southeast Asia
By Army Tunjaicon, Cack Wilhelm, Eric Liaw, Jules Maltz, and Louisa Xu One of the first lessons taught in Finance 101 is the value of compounding. According to...
29/09/2021
Amplitude: Making an Increasingly Digital-First World a Better Place
By Somesh Dash, Tom Loverro, Jules Maltz and James Black Today, at IVP, we are thrilled to congratulate Spenser Skates, Curtis Liu, Jeffrey Wang and the entire...
22/09/2021
Sorare raises $680M Series B to create the next sports entertainment giant leveraging NFTs
The round is led by SoftBank, with participation from Atomico, Bessemer Ventures...
22/09/2021
Sorare: The Next Generation of Fantasy Sports
By James Black, Eric Liaw, and Tom Loverro Today, IVP is proud to announce our investment in Sorare, the leader in global fantasy football powered by NFTs. We ...
13/09/2021
Papaya Global Raises $250 Million in Series D Funding at $3.7 Billion Valuation
Announces DEI Dashboard to Support Social Responsibility Tel Aviv, Israel & New York, NY September 13, 2021 Papaya Global, the industry-leading workforce m...
01/09/2021
Checkr Raises $250 Million at $4.6 Billion Valuation to Build Hiring Infrastructure for the Future of Work
San Francisco, CA September 1, 2021 Checkr, a leading HR technology company ...
30/08/2021
WHOOP Raises $200 Million Financing Led by SoftBank Vision Fund 2 at $3.6 Billion Valuation
Boston, MA Aug. 30, 2021 WHOOP, the human performance company, today announc...
30/08/2021
IVP Adds Shreyas Garg and Joanne Shang as New Investors to the Team
Menlo Park, CA - August 30, 2021 - IVP, a premier later-stage venture capital and growth equity firm, is pleased to announce two new additions to its investment...
25/08/2021
Cribl Raises $200M in Series C Funding on Traction with Global Enterprise Customers, Vision to Unlock Value of all Observability Data
Cribl is driving an Open Ecosystem of Data for enterprises; Flagship observabi...
25/08/2021
Cribl: Observing the Right Trend
By Cack Wilhelm, Jason Kong, Army Tunjaicon, Eric Liaw, and Tom Loverro We have just, today, announced a Series C investment in Cribl, and we are excited to sh...
12/08/2021
TaxBit Raises $130M Series B at $1.33B Valuation to Disrupt Legacy Tax Information Reporting
Dozens of financial institutions commit to real-time tax center solutions Salt ...
12/08/2021
TaxBit The Most Fun We've Ever Had Talking About Taxes
By Tom Loverro, Ajay Vashee, Eric Liaw, and James Black Today, IVP is proud to announce our investment in TaxBit, the leading tax and accounting software provi...