STOCKHOLM, Sept 15 (Reuters) - 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.
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
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