China's Ant Financial Expands in Europe With Minority Investment in Klarna
March 04 2020 - 9:53AM
Dow Jones News
By Adam Clark
China's Ant Financial Services Group is expanding its presence
in Europe with a minority investment in one of the continent's
fastest-growing startups, Swedish payments company Klarna, the
companies said Wednesday.
Klarna said the investment means its services will be offered
more broadly to consumers and merchants using Alibaba, the Chinese
e-commerce giant cofounded by Jack Ma which originally housed Ant
Financial.
"Alipay, and the wider Alibaba Group, have truly set the global
pace on retail innovation and the app economy. We are delighted in
this confidence shown in Klarna in defining the future of payments
and shopping, and are very much looking forward to working together
further in the future," Klarna Chief Executive Sebastian
Siemiatkowski said.
Details of the investment weren't disclosed but Reuters reported
Ant Financial is taking a stake of less than 1% via a mix of
existing and new shares, and the deal values Klarna slightly higher
than its last reported $5.5 billion valuation, which made the
company one of Europe's most valuable private fintech
companies.
Klarna, which says it has 85 million users, offers "pay later"
options to online shoppers and assumes the collection risk, but
makes most of its money by charging retailers. It already
collaborates with Alipay, the payment platform operated by Ant
Financial.
The Swedish company was founded in 2005 and received earlier
investments from U.S. backers Sequoia Capital and General Atlantic.
Last year it reported an investment from rapper Snoop Dogg who has
subsequently starred in its advertising.
Ant Financial--last valued in a funding round at around $150
billion--has taken steps to expand its reach outside of China in
recent years, including acquiring U.K. money-transfer company
WorldFirst for around $700 million in 2019. It previously failed in
an effort to acquire MoneyGram International Inc., after being
blocked by U.S. authorities.
Write to Adam Clark at adam.clark@wsj.com
(END) Dow Jones Newswires
March 04, 2020 10:38 ET (15:38 GMT)
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