Klarna sells UK loan portfolio to hedge fund Elliott Advisors in £30bn deal
Swedish buy now, pay later (BNPL) fintech Klarna has signed a multi-year agreement with a subsidiary of funds advised by London-based Elliott Advisors (UK) Limited to sell “substantially all of Klarna’s short-term, interest-free product receivables in the UK”.
Klarna says it will still own “all consumer-facing activities, including underwriting and servicing”
In a statement released this week, Klarna confirmed that upon completion of the deal, it will still own “all consumer-facing activities, including underwriting and servicing”.
According to Klarna’s CFO, Niclas Neglén, the agreement aligns with the company’s “global growth” strategy and enables the firm to “deploy shareholder equity more effectively” by freeing up an estimated £30 billion in funds.
This marks the latest in a series of strategic manoeuvres by Klarna as it readies itself for a highly anticipated stock market debut, which, according to reports from Bloomberg, may occur next year.
In June, the company also announced the $515 million sale of its online checkout service, Klarna Checkout, and went on to acquire the assets of New Zealand-based BNPL firm Laybuy in August.
Founded in 2005, Klarna claims to have served 10 million customers in the UK over the past year. Additionally, the firm says the number of retailers offering its services in the UK has surged by 33% during this period, exceeding 40,000.
