Fintech startup Klarna has actually raised a mega-round of funding led by Silver Lake. The company is raising $650 million at a post-money appraisal of $10.65 billion. Klarna states it is now the highest-valued personal fintech business in Europe following today’s financing 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 purchased out existing investors.

Klarna’s main product is an alternative payment technique on e-commerce platforms. It lets you purchase now and pay later over 3 or 4 installations with 0% interest. It has actually been quite popular in different European markets as many consumers do not have charge card and/or don’t want to pay the charges involved with revolving credit limit.

Merchants earn money when the initial deal accompanies Klarna transparently managing credit lines for customers. In addition to transaction fees, the business also produces revenue from late fees.

More just recently, the company broadened to the U.S. where it now has 9 million clients out of 90 million clients in total. It primarily competes with Affirm in the U.S. Klarna has actually also been expanding its offering by targeting customers directly– not just e-commerce business.

You can now download the Klarna app to see all your Klarna payments, gain access to a market of shops, track deliveries and established price-drop notifications. Utilizing the app, you can likewise create virtual cards to pay with Klarna on unsupported stores, such as Amazon. It’s not as straightforward as clicking Klarna when you take a look at, but it works. The app has 12 million monthly active users and 55,000 day-to-day downloads.

The company released a rewards program this summertime called Vibe. It is only readily available in the U.S. for now. It lets you make points for every single dollar you spend using Klarna as your payment method. You can exchange points for gift cards at H&M, Amazon, Walmart, Uber, etc.

. Klarna is now working with 200,000 retail partners, such as Sephora, Groupon and Ralph Lauren. Throughout the very first half of 2020, the business reported $466 million in revenue and $59.8 million in losses.

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.