Klarna raised $200M from Commonwealth Bank of Australia
Klarna AB, a Stockholm, Sweden-based fintech that provides installment financing for retail customers, announced that it completed an additional $200 million capital investment round.
CBA was already an shareholder, as it had previously invested $100 million. After the new investment raises its stake in Klarna from 1.8% to 5.5%. The two companies will jointly own Klarna's Australian and New Zealand business, and CBA will have the right to partner with Klarna in Indonesia.
Klarna will be available via the CommBank mobile app, which has 7 million digitally active customers and 5.6 million customers that use the app daily. Klarna has more than 85 million customers that purchase through 200,000 merchants worldwide.
Klarna, founded in 2005 by CEO Sebastian Siemiatkowski, allows users to make online purchases with retail partners in four monthly installments with no fees or interest charges when they pay on time. The company claims to serve over 60 million consumers and work with 130,000 merchants partners, processing 1 million transactions daily and aiming to get to a $1 billion annual revenue.