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Klarna confirms its $1bn raise at a $31bn post-money valuation

The ‘buy-now-pay-later’ giant will also pledge 1% of the funds ($10m) to sustainability initiatives.

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Sebastian Siemiatkowski/Klarna.

Klarna’srumoured billion-dollar funding round has been confirmed by the ‘buy-now-pay-later’ (BNPL) lender, making the fintech the second-highest valued in the world.

CEO and co-founder Sebastian Siemiatkowski said the $1bn round had been 4x oversubscribed, with Klarna reaching a valuation of $31bn.

The funding comes just six months after its last $650m funding round, when the fintech was valued at just $10.65bn.

​“At Klarna, we solve problems—that is the heart of what we do for both consumers and retailers. Consumers want transparent products to help them bank, shop and pay that reflect the way they live their lives, not just outdated traditional models,” said Siemiatkowski, announcing the raise.

Siemiatkowski also announced that 1 per cent of the funds raised ($10m) would be put towards sustainability initiatives, which Klarna is planning to reveal on 22 April on World Earth Day.

He added: “it is also time for us, with our culture of change, disruption and innovation, to focus on tackling bigger, more complex issues. I believe our industry has a responsibility to help in some way solve global sustainability issues and I hope others will join Klarna in our ambition.”

Klarna offered a hint of its product roadmap a few weeks back with the launch of bank accounts in Germany.

The lender also teamed up with Swedish cryptocurrency broker Safello to let the startup use its open banking rails for payments.

A Worldpay report last week indicated that annual BNPL spending, currently at £9.6bn in the UK, could reach £26.4bn by 2024 or 10 per cent of the eCommerce market.

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