Klarna Logo

The story of Klarna began in 2005 in Stockholm, Sweden, when three students from the Stockholm School of Economics—Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson—sought to create a simpler and safer online shopping experience. Their idea was to reduce the risks of online purchasing by allowing customers to receive their products before making payments.

Initially, the company was named Kreditor Europe AB, primarily focusing on helping Swedish online merchants process payments. The founders faced several challenges early on, including skepticism from investors and the difficulty of convincing retailers to adopt their approach.

The business began to grow after receiving its first investment from Swedish entrepreneur Jane Walerud in 2007. That same year, the company rebranded as Klarna, a name that reflects its mission to simplify online shopping—”Klarna” means “to clarify” or “to make clear” in Swedish.

The year 2008 marked a significant expansion for the company. It began partnering with prominent Swedish online retailers, greatly increasing transaction volumes. In the same year, the company received a credit institution license from the Swedish Financial Supervisory Authority, allowing it to expand its range of financial services.

In 2009, the business began its international expansion by entering the markets of Finland and Norway, marking the start of its strategy to build a payment system across Scandinavia.

In 2010, the organization entered Germany, the largest e-commerce market in Europe. While this move required substantial financial investment and adaptation to new regulations, it was crucial for the company’s long-term success.

In 2011, the company received investment from Sequoia Capital, one of the world’s largest venture capital firms. This helped the business enhance its global profile and secure additional funding.

During 2012 and 2013, the company continued its geographic expansion, entering the Austrian and Dutch markets and preparing for entry into the US market.

2014, the company made its first major acquisition, purchasing German competitor SOFORT for $150 million. This acquisition strengthened the company’s technology capabilities and position in the German market.

The company launched in the US market in 2015, establishing an office in New York and beginning partnerships with US retailers. This phase required significant financial investments and product adjustments to meet the specific needs of the US market.

Between 2016 and 2017, the company continued to develop its technology solutions. The organization launched a mobile app, enabling consumers to manage their payments and purchases via a mobile platform. The company also focused on expanding its customer loyalty program.

2018, the business achieved a significant milestone when Swedish regulators granted it a banking license. This allowed the organization to offer a wider range of financial services and explore new opportunities.

Following a new round of investment in 2019, the company reached unicorn status with a valuation of over $5.5 billion. The new Buy Now, Pay Later product quickly became popular among younger consumers.

The business experienced rapid growth during 2020 and 2021 despite global economic challenges. The company’s substantial international expansion, partnerships with major retailers, and acquisition of additional capital led to a valuation of $45.6 billion by June 2021.

In 2022, the organization faced new challenges due to changes in the global economic landscape. The company restructured, reducing its workforce and focusing on profitability. Despite these challenges, the business continued to innovate and expand its market presence in key regions.

By 2023, the organization had established itself as one of the leading companies in the financial technology industry, partnering with thousands of retailers worldwide and serving millions of customers. The company continues to invest in technology and geographic expansion, aiming to become a global leader in payments and shopping.

The company has faced various challenges throughout its history, including regulatory pressure, resistance from traditional financial institutions, and the need to adapt to changing consumer preferences. However, thanks to its innovative approach, focus on user experience, and ability to quickly adapt to market conditions, the organization has grown from a small Swedish startup into a major global financial player.