Klarna has picked up a minority investment from Chinese giant Ant Financial, in a move which will fuel deeper integration between the Swedish buy now, pay later brand and the Alipay payments app.
Terms of the deal were not disclosed although it is understood that Ant's equity investment amounts to a one percent stake in Klarna, which is currently valued at $5.5 billion following a $460 funding round last year.
The deal is a big win for Klarna which earlier this year reported its first annual loss of $113 as it embarks on a headlong rush to extend its brand in global markets, with launches in Australia and the US.
The new relationship will deepen ongoing collaborations between Klarna and Alipay, which currently enables shoppers at AliExpress, the global retail online marketplace of Alibaba Group, to use Klarna’s platform across multiple markets.
Sebastian Siemiątkowski, CEO at Klarna, says: “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.”