Startup

Klarna

Klarna is a Swedish fintech company that pioneered the “buy now, pay later” (BNPL) model globally. Founded in 2005 by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, Klarna started by offering online shoppers in Sweden a way to purchase goods on invoice (pay after delivery). Over the next decade, the company expanded across Europe and beyond, becoming a dominant online payments provider. As of 2021, Klarna was Europe’s highest-valued private tech company at $45.6 billion, reflecting meteoric growth fueled by consumers’ appetite for installment payments. Klarna’s app and services allow users to split purchases into interest-free installments or pay later, and it partners with over 450,000 retailers worldwide, including global brands like H&M, IKEA, and Nike. The company has over 150 million users across 45 countries and handled $80 billion in transaction volume in 2021. Klarna’s journey, however, has seen dramatic swings: after reaching a $45B valuation in mid-2021, a combination of rising interest rates and tech market downturn led to a downround in 2022, cutting its valuation to $6.7 billion (an 85% drop). The company restructured, laying off 10% of its staff, and refocused on profitability. By 2023, Klarna returned to profit and saw renewed growth, aided by expanding beyond BNPL into a full shopping app with price comparison, loyalty features, and banking services (Klarna obtained a banking license in Europe in 2017). In 2025, Klarna reportedly delayed an IPO amid market volatility but ultimately went public in September 2025, raising $1.37 billion. Despite valuation fluctuations, Klarna remains the global leader in BNPL, with a strong brand among Gen Z and millennial shoppers. Its journey from a small Stockholm startup to a financial giant serving 65 million customers (2025) at one point valued at $75 billion exemplifies the rise (and resiliency) of Europe’s fintech sector.

SwedenStockholmLate StageFintechPayments

Details

Location

Stockholm, Sweden

Category

Startup

Stage

Late Stage

Profile

/sweden/startup/klarna

Investors

Venture capital firms backing this startup

Accel (London)

London, United Kingdom · Venture Capital

Accel is a top-tier global venture capital firm with a dedicated European team based in London. Established in Silicon Valley in 1983, Accel expanded to London in the early 2000s and has since become a leading backer of European tech unicorns. The Accel London fund invests broadly in consumer and enterprise technology companies from seed through growth stage. Accel’s Europe portfolio reads like a who’s-who of success stories – it was an early investor in Spotify, Facebook, and Slack, and in Europe it has funded Klarna, Hopin, and Cazoo among others. For example, Accel’s London team led rounds in Hopin (virtual events) and Klarna (fintech), both of which achieved multibillion-dollar valuations. The firm often takes board seats and provides hands-on support to founders in scaling globally. Accel is known for its deep network in Silicon Valley and Europe, helping bridge entrepreneurs to US markets. It manages multiple funds dedicated to Europe, including Accel London and Accel Europe, and typically invests from Series A onward (with selective seed bets). Notably, Accel was the first Silicon Valley VC to establish a permanent presence in London, reflecting its conviction in Europe’s tech potential. With over three decades of VC experience, Accel has the distinction of having backed over 100 unicorns worldwide. Its London arm continues to actively invest across sectors – from fintech and SaaS to cybersecurity and web3 – making Accel a cornerstone investor in Europe’s startup ecosystem. In short, Accel (London) combines global reach with local insight, helping Europe’s breakout startups scale to international success.

Venture CapitalSeed to GrowthGeneralistTechnology

Atomico

London, United Kingdom · Venture Capital

Atomico is a leading European venture capital firm founded in 2006 by Niklas Zennström, the co-founder of Skype. Headquartered in London with roots in Stockholm, Atomico focuses on backing ambitious tech founders across Europe at Series A and beyond. The firm manages several billion dollars across multiple funds and has built a portfolio of household names. Atomico’s approach leverages Zennström’s global experience – the firm often helps startups expand internationally and recruits senior talent via its notable “Executive-in-Residence” program. Atomico has invested in companies spanning fintech, deep tech, software, and consumer internet. Notable successes include Klarna (the Swedish fintech giant), Supercell (Finnish gaming, acquired by Tencent), Graphcore (UK AI chips), and MessageBird (Netherlands communications platform). Atomico was also an early backer of Stripe in the US and Viagogo. The firm is known for publishing the annual “State of European Tech” report, reflecting its thought leadership in the ecosystem. In terms of investment size, Atomico typically leads or co-leads Series A–C rounds with cheques of $5–$50 million, and it has the capacity to follow-on through later stages. It closed its fifth fund of $820 million in 2020 and a $1.2 billion fund in 2022, underscoring investor confidence in European tech. Atomico’s team includes partners with experience at Google, Uber, Spotify, and more – providing operational support to portfolio founders. The firm also stands out for its commitment to sustainability and diversity, integrating impact considerations and backing companies tackling climate change. Atomico’s influence is evidenced by the fact that as of 2025 it has produced five IPOs and multiple $10B+ exits in Europe. In summary, Atomico has established itself as a premier VC “built by founders for founders,” fueling Europe’s ascent with capital, expertise, and global networks.

Venture CapitalSeries A+GeneralistTechnology

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