Klarna Secures Additional Funding As Consumers Demand Smarter Alternatives to Buy, Bank and Pay

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NEW YORK, June 10, 2021 / PRNewswire / – Klarna, the world’s leading provider of payments, retail banking and purchasing services, today confirms new equity financing of $ 639 million. The round was led by Vision Fund 2 of SoftBank ,with additional participation from existing investors Adit Ventures, Honeycomb Asset Management and WestCap Group, to support international expansion and further capture global retail growth. Klarna’s other investors include Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group, Ant Group, North Zone, GIC – that of Singapore sovereign wealth funds – as well as funds and accounts managed by BlackRock and HMI. Klarna’s post-currency valuation is $ 45.6 billion and remains the most valued private fintech in Europe and the second in the world. As part of the GiveOne initiative set up by Klarna at the start of the year, 1% of this capital raised will be allocated to initiatives supporting the health of the planet.

Klarna enables consumers to shop, pay and bank in smarter ways, designed to fit the lives they lead, rather than the demands of the banking industry and traditional payments. The ongoing structural shift of consumers moving away from revolving lines of credit where they incur interest or charges to be debited and simultaneously seeking superior retail experiences means that Klarna’s healthier, more transparent and more convenient alternatives, which allow consumers to control are closely aligned with changing preferences drive global growth.

Sebastien Siemiatkowski, Founder and CEO of Klarna mentionned: “Consumers continue to reject interest-and-fee revolving credit and turn to debit as they seek retail experiences that better meet their needs. Klarna’s more transparent and convenient alternatives align with changing global consumer preferences and drive global growth. I am very proud of the investors who support Klarna’s ambition to challenge these outdated models to provide consumers with fair, transparent and convenient products to help them with their banking, shopping and payments every day.

Yanni Pipilis, Managing Partner of SoftBank Investment Advisers mentionned, “Klarna’s growth is based on a deep understanding of how consumer buying behaviors are changing, an evolution that we believe is accelerating. Klarna has already grown successfully in the United States and we are delighted to continue to support the team in bringing the next generation of financial services to new markets around the world. ”

Eric Munson, founder and CIO of Edit Ventures mentionned, “Adit Ventures is a proud investor in Klarna. We’re excited to see this unique brand continue to push the boundaries of modern payments, banking and shopping. Klarna’s rapid growth is a testament to her innovation, leadership and execution. I think the best is yet to come as Klarna expands its addressable market through global expansion. “

David Fiszel, founder and CIO of Honeycomb Asset Management mentionned: Honeycomb is proud to add to our previous investments in Klarna. We are excited to support its long-term global growth initiatives and mission to redefine the shopping experience for consumers. At scale. Klarna is truly a unique, founder-led company with a world-class management team focused on innovation in the growing fintech industry. “young charlie, partner at WestCap commented : “Klarna is leading a revolution in consumer preferences and has already redesigned payments, e-commerce and the banking experience for tens of millions of people. Klarna’s global scale and market leading position creates even more opportunities for the company in the future. WestCap is pleased to partner with Klarna at this exciting time in the company’s history. “

Klarna is available directly to consumers through the company’s shopping app, used by 18 million customers worldwide and more than 250,000 retailers worldwide. In the app, consumers can browse and buy online in any brand with Klarna payment options, allowing them to pay immediately or later, manage spending and available balances, add favorite items to collections, make refunds, access personalized discounts, receive price drop notifications. , track deliveries intelligently and join Klarna’s loyalty program, Vibe.

Klarna’s first quarter 2021 results show how these services resonate with consumers, registering more than $ 18.9 billion (Q1 2020: $ 9.9 billion) for the period driven by growth in all markets and exceptional momentum in the United States with more than 18 million American consumers now using Klarna. In 2020, the Klarna app consistently ranked among the top 10 app downloads in the United States and this momentum continues as downloads in 2021 grew 125% year on year, propelling record volumes in March 2021. Klarna now has a presence with 24 of America’s Top 100 Retailers, more than any of its competitors, illustrating our position as a global trading partner of choice. Likewise, Klarna’s global presence in 17 markets continues to grow, with a number of new markets launched in 2021, including France this week, soon to be the largest e-commerce marketplace in Europe Higher value $ 185 billion by 20243. This round of funding offers

GiveOne, the initiative to support the health of the planet established by Klarna earlier this year, with its third large donation since launch. Recent investor A $ AP Rocky has pledged to support the Alliance Miti in Kenya and its founder Michael waiyaki, which is fighting to slow the effects of climate change due to deforestation. Klarna also launched a CO2 tracker with every purchase. As part of one of the largest carbon footprint awareness efforts ever, 90 million Klarna consumers in all markets are now receiving the kgCO2 value on every purchase.

1 As of the date of this press release, SoftBank Group Corp. made capital contributions to enable SoftBank Vision Fund 2 (“SVF 2”) to invest in certain portfolio companies. The information included in this document is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy limited partnership interests in any fund, including SVF 2.Investors third parties will receive additional information relating to any SVF 2 investment prior to closing.
2 https://www.cbinsights.com/research-unicorn-companies
3 https://www.marketwatch.com/press-release/france-e-commerce-market-size-2021—latest-research-report-to-share-growth-strategy-industry-share-covid-19- impact-analysis-key-findings-and-forecasts-by-cagr-until-2024-2021-05-28

ENDS

For more information, please contact Klarna at:

Aoife Houlihan, vice-president of communications

Telephone: +46 (0) 72 855 8047

E-mail: [email protected] / [email protected]

About Klarna

With over 90 million active users worldwide and 2 million transactions per day, Klarna responds to the changing demands of consumers who want to buy, pay and bank on an intuitive platform and with a brand of trust. Over 250,000 global business partners including H&M, Saks, Sephora, Macys, IKEA, Expedia Group, Samsung, ASOS, Peloton, Ralph lauren, Abercrombie & Fitch, Nike and Shein have enabled Klarna to deliver an innovative shopping experience both online and in store. Klarna is one of the world’s most popular private fintechs with a valuation of $ 45.6 billion. Klarna was founded in 2005, has over 4,000 employees and is active in 17 markets. Klarna has been backed by Sequoia Capital since 2010 and more recently, SilverLake, Dragoneer, Bestseller Group, Permira, Ant Group, HMI Capital, TCV, NorthZone, Commonwealth Bank of Australia, Merian Chrysalis Investment Company Limited, funds and accounts managed by BlackRock among others.

About Edit Ventures:

Adit Ventures is a family-owned investment company with offices in California, Florida, new York, Texas and Utah. An “Adit” is an entry into a mine and serves as an anagram for company services, as it provides access, diligence, insight, and works with trusted partners across United States and all over the world. The Adit team maintains relationships cultivated over its 150 years of experience in principal investment. Adit seeks to capitalize on long-term secular trends in the global economy where she sees areas of dynamic growth. It is in these sectors that Adit sees the best opportunities for long-term capital appreciation and to have a positive impact on the world by improving the quality of life, while generating a healthy return on our invested capital in alignment. with their investors and their principles. Adit has invested in some of the world’s largest companies with releases in Airbnb, DocSend, GoPro, Lemonade, Palantir, SharesPost, SoFi, Spotify, Snap and Lyft.

About WestCap

the West Cape Group is a development capital company founded by Laurence A. Tosi, who, along with the WestCap team, has founded, capitalized and operated markets with technology and light assets for over 20 years. With over $ 2 billion of assets under management, WestCap has made notable investments in technology companies such as Airbnb, StubHub, iPreo, Skillz, Sonder, Addepar, Hopper, iCapital and Bolt. To learn more about WestCap, please visit WestCap.com.

About Honeycomb Asset Management

Honeycomb Asset Management was founded by David Fiszel in 2016 and specializes in public actions and private investments. The Honeycomb is one of the best examples of the nature of an evolutionary and repeatable process driven by a common goal – it serves as inspiration for the activities of Honeycomb. The company’s mandate is to invest in the future and the short term® through rigorous fundamental analysis of companies.

Honeycomb seeks to identify secular growth opportunities as the foundation of its public and private portfolios. The company has invested in some of the most innovative private companies including Palantir, SpaceX, Spotify, Peloton, Mirror and MasterClass.

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