This funding aims to help Klarna continue its rise in the US market, where it is currently growing at an annual rate of 6 million new US consumers. Klarna’s consumer offering provides a smarter alternative to credit cards, with the addition of multiple services to smoothen the shopping experience online and offline. Also, the company recently launched a shopping app, which allows its users to shop with Klarna at any store or brand online.
Klarna is now powering over 3000 merchants in the US — including rue21, ASOS, Lulus, Toms, Superdry, Sonos, and Acne Studios —, helping them increase new consumer acquisition, average order value, and retention. The business results show that merchants who are offering ‘Pay in 4’ report a 68% increase in average order value, a 44% increase in conversion compared to cards, and 21% higher purchase frequency. Moreover, global brands including H&M, Abercrombie & Fitch, and Boohoo Group will soon go live with Klarna. Currently there are over 1000 merchants integrating with Klarna with a combined volume of USD 10 billion.
With the participation of the Commonwealth Bank of Australia, the country’s retail and commercial bank, in the equity round, Klarna has also agreed to establish an exclusive partnership for the Australian and New Zealand markets. The funding round was led by US-based growth-oriented investor Dragoneer Investment Group. Other investors in the round include Commonwealth Bank of Australia, HMI Capital LLC, Merian Chrysalis Investment Company Limited, Första AP-Fonden (AP1), IPGL, IVP, and funds and accounts managed by BlackRock.
For more information about Klarna, please check out a detailed profile of this company in our dedicated, industry-specific online company database.
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