Klarna to lift $1 billion at $31 billion valuation

The logo of the Swedish payment provider Klarna will be shown on the display of a smartphone on April 22, 2020 in Berlin.

Thomas Trutschel | Photo library | Getty Images

LONDON – Klarna is close to finalizing a $ 1 billion financing round that would bring the Swedish fintech company $ 31 billion, two sources familiar with the matter told CNBC.

The Stockholm-based company is one of the world’s largest providers of “buy now, pay later” services that allow buyers to spread the cost of their purchases over a period of interest-free installments.

The company is lifting a bumper on a potential blockbuster listing that would be a boon to some of its earliest venture capital investors like Atomico and Sequoia. Klarna is also supported by well-known investors such as Snoop Dogg and Ant Group.

The deal could be closed in a matter of days, the sources said, preferring to remain anonymous as the details have not yet been released. The fresh capital injection was oversubscribed and increased in just a week, one of the sources said.

Klarna declined to comment when contacted by CNBC.

Klarna is now Europe’s top tech unicorn, surpassing payment software company Checkout.com, which was valued at $ 15 billion last month.

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