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Klarna Announces $460M Equity Raise to Further Support Massive US Growth

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Klarna, the leading global disruptor of payments and banking, and provider of smoooth retail services, is pleased to announce it has raised $460 million in an equity funding round, at a post money valuation of $5.5 billion. This new valuation ranks Klarna as the largest private fintech in Europe and as one of the largest private fintechs globally.

This funding will help Klarna to continue its rapid rise in the US market, where it is currently growing at an annual rate of 6 million new US consumers. The uniqueness of Klarna’s consumer offering, providing a healthier, simpler and smarter alternative to credit cards, with the addition of multiple services to smoothen the shopping experience, online and offline, is clearly resonating with the US consumer. This is as consumers are turning away from revolving credit lines towards alternative and more flexible financing alternatives. Most importantly, Klarna’s recently launched shopping app which allows its users to shop with Klarna at any store or brand online has been received very positively, with now more than 50% of the app users purchasing each week.

Klarna has also seen a surge in merchant demand for its services. Klarna is now powering over 3000 merchants in the US – including rue21, ASOS, Lulus, Toms, Superdry, Sonos and Acne Studios – and helping them increase new consumer acquisition, average order value and retention. The business results are strong, with merchants who are offering ‘Pay in 4’ reporting a 68% increase in average order value, a 44% increase in conversion compared to cards and 21% higher purchase frequency. Global brands H&M,  Abercrombie & Fitch and Boohoo Group will soon go live with Klarna and there are currently more than a 1000 merchants integrating with Klarna with a combined volume of $10bn. The momentum of acquisition continues and in July a record number of new merchants signed with Klarna in the US.

Klarna’s footprint continues to grow, now serving over 60 million consumers, 130,000 merchants partners, 1 million transactions daily and is in sight of a $1 billion annual revenue. We are therefore delighted to announce that with the participation of the Commonwealth Bank of AustraliaAustralia’s largest retail and commercial bank, in the equity round, we have also agreed to establish an exclusive partnership for the Australian and New Zealand markets.

The funding round was led by Dragoneer Investment Group, a leading San Francisco based growth-oriented investor. 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. This investment follows a funding round in April of this year that closed above the company’s $100 million target, driven by strong demand from Klarna’s existing investor base.

Sebastian Siemiatkowski, co-founder and CEO of Klarna: “This is a decisive time in the history of retail banking. Finally, transparency, technology and creativity will serve the consumer, and there will be no more room for unimaginative products, non-transparent terms of use or lack of genuine care of ones customers. We, all 2500 of us at Klarna, are humbled and honoured, and now also further empowered, to play a role in this improvement of an industry for the benefit of the consumer, worldwide and in the US in particular. ”

Marc Stad, Founding Partner at Dragoneer: “Our strategy is to partner with a small number of disruptive, growth companies that are highly differentiated and run by world-class management teams. Sebastian and the Klarna team have built an exceptional payments business with a global footprint, operating in a huge addressable market with strong tailwinds.”

Richard Watts, Merian Chrysalis Investment Company: “Klarna has built a highly-impressive, digital payment ecosystem, trusted by both retailers and consumers. By simplifying and improving the flexibility of the payments process, retail partners working with Klarna have seen considerable improvement in customer engagement and sales. Klarna is one of Europe’s great fintech success stories and the company continues to develop truly innovative payment solutions. This latest funding round will enable the company to execute on its ambitious international growth plans.”

Numis acted as exclusive financial advisor and placement agent to Klarna.

 

SOURCE Klarna Bank AB (publ)

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Broadridge Brings Together Wealth Business Under Michael Alexander

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Broadridge Financial Solutions, Inc. (NYSE: BR), a global Fintech leader and part of the S&P 500® Index, today announced that Michael Alexander has been appointed President, Wealth Management. In this newly created position, he will be responsible for bringing together Broadridge’s Wealth solutions into an integrated, market-leading Wealth Management business that will uniquely address Wealth Management firms’ need to transform their technology and business models. Mr. Alexander will report directly to Tom Carey, President of Global Technology and Operations.

“Mike is a recognized leader in the financial services industry and has a passion for creating leading-edge, SaaS-based wealth management solutions,” said Mr. Carey. “Mike will drive Broadridge’s efforts to enhance the advisor and client experience through a single platform that will be a foundation for the industry.”

As President of Broadridge’s Wealth Management business, Mr. Alexander will take leadership of the Broadridge Wealth Platform, the next-generation open platform that is creating a modern, best-in-class industry-level wealth management technology solution. This platform, which is at the center of a recently announced sale to UBS, enables wealth managers to drive their business to the next level while mutualizing investments in technology, innovation and security. With the Broadridge Wealth Platform, firms will be able to deploy an integrated front-, middle-, and back-office solution that optimizes Financial Advisor productivity, creates a richer client experience and digitizes enterprise-wide operationsBroadridge Wealth Management also offers market-leading component solutions for Advisor Websites, Data Aggregation, Performance Reporting, Corporate Actions, and back- and middle-office Managed Services, among others.

Since joining Broadridge in 2006, Mr. Alexander has taken on roles of increasing responsibility in both technology platforms and managed services. In these roles, he has led numerous complex client engagements and successful acquisitions.

Prior to joining Broadridge, Mr. Alexander was Senior Vice President of Operations at Charles Schwab. He is a member of the SIFMA Operations and Technology Steering Committee.

 

SOURCE Broadridge Financial Solutions, Inc.

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Bajaj Housing Finance Limited Bags the BFSI Digital Innovation Awards 2020 for Cloud Solutions

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Bajaj Housing Finance Limited (BHFL), a 100% subsidiary of Bajaj Finance Limited, has won the ‘BFSI Digital Innovation Award’ for Cloud Solutions at the recently held Express BFSI Technology Conclave and Awards 2020.

Organised by the Express Computer, an IT business magazine from the Indian Express Group, the BFSI Technology Conclave and Awards, is one of the largest congregation of IT decision-makers, senior executives and partners in India. The event, held in Pune from January 24th-25th, 2020 witnessed the best from the BFSI sector participate as speakers and share their views on the way ahead for one of the biggest financial markets in the world.

The conclave ended with the BFSI Digital Innovation Awards which were given away to Indian Banks or Indian subsidiaries of MNC BFSI institutions in the BFSI industry that demonstrate the innovative use of a particular technology or a combination of technologies for distinct business benefit. There were 13 distinct categories – like Big Data, Enterprise Mobility, Data Center, Cloud, Artificial Intelligence, Enterprise Security, Blockchain and Enterprise Application among others.

The participants were judged on their effectiveness of deploying a completely new solution or innovative use of existing technology to gain a competitive edge, improve operations, become more responsive to customers and partners or, simply, to add to the top or bottom line.

Sharing his delight at the occasion of winning the award for excellence in Cloud, Atul Jain, Chief Executive Officer- Bajaj Housing Finance Limited said, “It is indeed a proud moment for all of us at BHFL and would like to congratulate the entire team for helping us achieve this prestigious recognition at the Express BFSI Digital Innovation Awards 2020. Since inception, our core mission has always revolved around providing the best experience for our customers through innovation and customer engagement.”

 

SOURCE Bajaj Housing Finance Limited

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LiteLink Technologies Subsidiary uBUCK Technologies Completes Second Tranche of Private Placement to Fuel Growth

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LiteLink Technologies Inc. (“LiteLink”) (CSE:LLT)(OTC:LLNKF)(FRA:C0B), a key player in logistics platforms and payment solutions, is pleased to announce that its subsidiary uBUCK Technologies SEZC (“uBUCK”) has closed the second tranche of a non-brokered, non-dilutive private placement previously announced on September 23, 2019.

Under the second tranche, uBUCK issued 1,000,000 preferred shares at a price of US$0.50 per share for gross proceeds of US$500,000. Under the terms of the offering, uBUCK expects an additional minimum investment of US$1,500,000 will be made in exchange for 3,000,000 preferred shares at a price of US$0.50 per share by June 30, 2020.  The investor will also have the option to invest an additional US$2,500,000 for a total of 8,000,000 preferred shares at a price of US$0.50 per share by September 30, 2021.

Along with the first tranche closing announced September 30, 2019, uBUCK has now raised a total of US$900,000.

uBUCK intends to use the gross proceeds of the private placement to complete the development of the uBUCK and Streambucks digital wallets, accelerate growth, increase customer acquisitions, and conduct additional product testing.

Because the private placement was made directly into a subsidiary of LiteLink, it is non-dilutive to LiteLink shareholders. The transaction is subject to all necessary regulatory and stock exchange approval.

The preferred shares come with first rights to dividends of 6% (of the amount invested) and first claims to assets up to the investment in case of liquidation. Upon closing of this tranche, the investor will own 3.6% of uBUCK.

 

SOURCE LiteLink Technologies Inc.

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