London-based buyout house Permira has agreed to pick up a strategic stake in European fintech banking newcomer Klarna Bank.
Financial details of the deal were not disclosed, but it is believed the 10 per cent stake figure reported by the Financial Times is broadly accurate.
Sweden-based Klarna provides payment solutions for commerce websites across Europe. The platform offers a safe platform for online transactions and assumes credit risk and fraud to ensure sellers always receive payment.
Klarna offers a range of payment options including ‘pay after delivery’, ‘buy now pay later’, ‘planned payments’ or ‘pay now’ terms.
The firm will acquire shares from the current shareholders General Atlantic, DST Global and Niklas Aldberth. Aldberth will retain an equity stake.
Permira principal Andrew Young, said, “In Klarna we see a unique scale fintech innovator that has successfully improved shopping experiences for both merchants and consumers.
“We see many vectors that will drive future success and we look forward to supporting the company’s future organic, geographic, and acquisition growth strategies.”
Lat month FinTech Global reported Brightfolk had picked up an undisclosed stake in to Klarna.
Permira closed its last fund in 2016 at its upper limit of €7.25bn.
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