Startup Fintech Clear has raised a mega-round of funding led by Silver Lake. The company raised $ 650 million at a post-cash valuation of $ 10.65 billion. Clear says it is now the highest value private fintech company in Europe after today’s funding round.
In addition to Silver Lake, GIC (Singapore’s sovereign wealth fund) and funds and accounts managed by BlackRock and HMI Capital are also participating in today’s funding round. Merian Chrysalis, TCV, Northzone and Bonnier have bought existing shareholders.
Klarna’s main product is an alternative payment method on e-commerce platforms. Lets buy now and then pay more than three or four installments with 0% interest. It has been quite popular in various European markets that many customers do not have credit cards and / or do not want to pay the fees associated with revolving lines of credit.
Merchants are paid when the initial transaction is made with Klarna transparently managing credit lines for customers. In addition to transaction fees, the company also generates revenue from late fees.
Most recently, the company expanded to the United States where it now has 9 million customers over 90 million customers in total. Competing primarily with Affirm in the United States Klarna has also expanded its offering by directly targeting consumers – not just e-commerce companies.
You can now download the Klarna app to view all your Klarna payments, access a grocery store, track deliveries and set up price drop notifications. Using the app, you can also create virtual cards to pay with Klarna at unsupported stores, such as Amazon. It’s not as clear as clicking Klarna when checking, but it works. The app has 12 million monthly active users and 55,000 daily downloads.
The company launched a reward program this summer called Vibe. It is only available in the United States for now. It allows you to earn points for every dollar you spend with Klarna as your payment method. You can exchange points for gift cards at H&M, Amazon, Walmart, Uber, etc.
Klarna is currently working with 200,000 partners, including Sephora, Groupon and Ralph Lauren. During the first half of 2020, the company reported $ 466 million in revenue and revenue $ 59.8 million in losses.