Swedish payments firm Klarna has raised $639 million from a group of investors led by SoftBank’s (9984.T) Vision Fund II, lifting its valuation to about $46 billion – higher than several of the region’s major banks.
Klarna, which allows shoppers to buy online through its merchant partners and settle their dues in installments via “buy now, pay later” (BNPL), became Europe’s most valuable startup in March when a $1 billion fundraising valued it at $31 billion.
The current round was led by SoftBank, joined by existing investors such as Adit Ventures, Honeycomb Asset Management and WestCap Group.
Klarna’s other investors include Sequoia Capital, NorthZone, Silver Lake, Dragoneer, Permira, Commonwealth Bank of Australia (CBA.AX), Bestseller Group, Ant Group (688688.SS), rapper Snoop Dogg, BlackRock (BLK.N) and Singapore’s sovereign wealth fund GIC.
Reuters reported last month that Klarna was close to raising a new round of funding at a valuation close to $50 billion.