Klarna Logo

Klarna was founded in Stockholm in 2005 by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, three students from the Stockholm School of Economics. Their idea was to make online shopping safer by allowing customers to receive goods before paying. The company first operated as Kreditor Europe AB, helping Swedish online merchants process transactions while trying to convince retailers and investors to accept its model.

The business gained momentum in 2007 after early funding from Swedish entrepreneur Jane Walerud. That year, Kreditor became Klarna, a name linked to the Swedish idea of making things clear. In 2008, the company began working with major Swedish online retailers and received a credit institution license from Sweden’s financial regulator, allowing it to broaden its financial services.

International expansion started in 2009 with Finland and Norway, followed by Germany in 2010, Europe’s largest e-commerce market. In 2011, Sequoia Capital invested in Klarna, helping strengthen its global position. The company then entered Austria and the Netherlands in 2012 and 2013, while preparing for the United States. In 2014, Klarna bought German competitor SOFORT for $150 million.

Klarna entered the US market in 2015 with a New York office and retail partnerships. In 2016 and 2017, it developed its mobile app and loyalty tools, then received a Swedish banking license in 2018. By 2019, its valuation had passed $5.5 billion, supported by the “buy now, pay later” model. In June 2021, Klarna reached $45.6 billion in valuation, then restructured in 2022, cutting staff and focusing on profitability. By 2023, it worked with thousands of retailers and millions of customers worldwide.