Snoop Dogg Backs Europe’s Biggest Fintech as it Enters US Market
Swedish online payment startup Klarna has become the largest privately owned FinTech company on Europe’s soil. The company reached that milestone upon completing a $460 million funding round and achieving $5.5 billion valuation on August 6.
The rapper Snoop Dogg, a shareholder, has become brand ambassador for the company.
Klarna started a successful collaboration with the hip-hop artist in January with a series of TV ads titled Get Smoooth. Commercials featuring Snoop Dogg and is pedigree dogs soon went viral, contributing to Klarna’s global brand awareness.
The Stockholm-based company has developed its own “buy now, pay later” model and plans to expand to the US market. This decision was influenced by San Francisco's Dragoneer Investment group, one of the major players in the recent funding round.
According to Klarna’s press release, the company provides “a smarter and easier alternative to credit card payments, with a range of additional services that will make both online and offline purchases as smooth as possible.”
Consumers are offered a unique checkout experience with the ability to pay immediately or later without paying interest. In addition, Klarna helps consumers pay off debt by purchasing goods directly from the retailer.
Snoop Dogg made a news release of his own. “I’ve been looking for an opportunity to expand my tech investment portfolio to Europe,” the rapper said, “and seeing the way Klarna operates and how they challenge the status quo, I think it’s a match made in heaven. I’m very excited about this partnership.”
Klarna currently serves more than 60 million users, collaborates with about 130,000 merchants and will soon reach annual revenues of $1 billion. CEO Sebastian Siemiatkowski projects an average of 6 million new US customers every year, as he believes the service clearly resonates with the US market.
After H&M joined the list of stakeholders, Siemiatkowski announced the possibility of an initial public offering, as well as the company's entry into the markets other than America. In his view, there are many opportunities in less competitive markets such as China.
Photo: Charito Yap
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