Payment provider Klarna Bank AB said on Tuesday it has raised $650 million at a valuation of $10.65 billion from investors led by Silver Lake, as the Swedish company seeks to compete with rivals such as PayPal and Australia's AfterPay in the hotly contested U.S. markets.
Other investors include Singapore’s sovereign wealth fund GIC, funds managed by BlackRock and HMI Capital. Concurrently, Merian Chrysalis, TCV, Northzone and Bonnier have acquired shares from existing shareholders, the company said.
Reuters had reported about the potential fund-raising round last week, citing sources.
The new valuation is nearly double of the $5.5 billion valuation reached after the funding round in August last year.
Existing investors include Sequoia Capital, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group and Ant Group.
Founded in 2005, Klarna allows shoppers to buy online through its merchant partners and settle the dues in four installments using its “buy-now-pay-later” (BNPL) service.
It has been investing heavily to expand in the United States and the UK, resulting in the company posting its first annual loss earlier this year. Klarna’s losses have jumped seven-fold in the first half of the year.
The company, backed by rapper Snoop Dogg, plans to list in New York in the next two years.
Reporting by Supantha Mukherjee in Stockholm, Editing by Sherry Jacob-Phillips