Swedish lender Klarna is reportedly to raise $1bn in the coming days at a valuation of nearly $31bn.
The company is planning to raise $800m to $1bn in the coming days, Bloomberg reported citing undisclosed sources.
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In September last year, the fintech raised $650m in an equity funding round at a valuation of $10.65bn.
The valuation at which the Swedish company is now aiming to raise funds is almost three times more than its September round.
The latest round could be joined by the company’s existing investors ahead of potential public offering next year, the Bloomberg report added.
The possible public listing of Klarna was indicated by the company’s CEO Sebastian Siemiatkowski without revealing any exact timing.
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By GlobalDataThe buy now, pay later (BNPL) company became a popular payment option against traditional firms like PayPal and Square.
Klarna has benefited from the rise of e-commerce during the Covid-19 pandemic, especially in the US with 15 million customers, reported Bloomberg.
Through its BNPL platform, Klarna allows customers to pay for their purchases through interest-free instalments at the network of partnered retail outlets.
However, Klarna is facing criticism for its BNPL service, which allegedly pushing customers to spend more than they afford.
While the UK’s Financial Conduct Authority (FCA) seeks to regulate this BNPL platforms, Klarna said it will welcome those rules, reported Bloomberg.
Launched in 2005, Swedish based Klarna offers a range of payment services, including direct payments, pay after delivery and a number of instalment plans.
This app-based payment company is active in 17 countries with 90 million end customers.
Earlier this month, Klarna introduced consumer bank accounts in Germany to allow customers to shop and bank using one app.
