Payments firm Klarna valued at £32bn after raising fresh funds to help its expansion
Payments firm Klarna is now worth £32billion after raising a fresh chunk of money to help fund its expansion.
The shopping credit business, popular with millennials in their 20s and 30s, pulled in £451.7million of new money from Softbank and US venture capital firms Adit Ventures, Honeycomb Asset Management and Westcap Group.
It means Klarna’s value has now ballooned from £22billion in March and £7.8billion last September, making it the second-highest valued unlisted financial tech firm in the world.
Whip round: Payments firm Klarna pulled in £451.7m of new money from Softbank and US venture capital firms Adit Ventures, Honeycomb Asset Management and Westcap Group
The company allows consumers who shop online to pay for their items in instalments, or to pay after their shopping arrives in the post so they have time to try it first.
But Klarna, which was founded in Sweden, has drawn criticism in the UK for luring young people into unsustainable debt.
MPs and regulators are worried shoppers use Klarna without thinking of the risks, and only realise months later that they are paying off debts they cannot afford.