PitchBook News - Klarna eyes $40B+ valuation

Read online | Don't want to receive these emails? Manage your subscription.

PitchBook

Log in

The Daily Pitch: VC

May 28, 2021

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

Editor's Note

Our team will be taking a break over the holiday weekend, so no newsletter on Monday.

In the meantime, you can catch up on our featured content on News & Analysis.

Today's Top Stories

Klarna valuation could top $40B in SoftBank-led round

Klarna plans to hold its position as Europe's most valuable VC-backed company, according to PitchBook data. (Courtesy of Klarna)

SoftBank is nearing a deal to lead a funding round for Klarna that could value the Swedish fintech provider at between $40 billion and $50 billion, Business Insider reported. News of the deal comes amid a record-setting pace for VC funding of European fintech companies in 2021.

Already Europe's most valuable VC-backed company, according to PitchBook data, Klarna raised $1 billion at a $31 billion valuation in March. Stockholm-based Klarna is the creator of a shopping app that offers a buy-now, pay-later option to customers.

Buy-now, pay-later services have exploded alongside the pandemic-era rise in online shopping. Stripe recently partnered with Afterpay to offer the payment option at checkout, and PayPal launched a similar service last year. The model has even been applied to healthcare in the US as a way for hospitals to provide payment plans to patients.

But regulators—especially in the UK—are increasingly taking a tougher stance against Klarna and its peers. The Financial Conduct Authority plans to regulate the sector amid concerns over unaffordable loans. Klarna is also in hot water over its social media ad campaigns, which "irresponsibly" promoted the use of credit, according to the UK Advertising Standards Authority.

Related podcast: Autonomous finance's obstacles and opportunities

Share:

SoftBank goes it alone on Vision Fund 2 as portfolio profits leap

SoftBank CEO Masayoshi Son (Koki Nagahama/Getty Images)

A year ago, SoftBank struggled to attract investors to its second Vision Fund amid steep losses. Now, the Japanese firm is sitting on record-setting profits, but it's in no rush to raise outside capital.

SoftBank added $10 billion of its own money to the Vision Fund 2, bringing the total to $30 billion. Its Latin American fund is also self-financed.

"We don't have to beg," said CEO Masayoshi Son, adding that the company wasn't opposed to eventually bringing on outside LPs.

The firm has set a voracious investment pace this year, headlining deals for chipmaker Sambanova and Didi Chuxing's self-driving unit.

Recommended Reads

The seven co-founders of Databricks weren't looking to make a profit on their software when they formed the company eight years ago. Now, a handful of them are billionaires. [Forbes]

The pandemic has changed the way firms perform due diligence and hire asset managers. Will the changes be permanent? [Institutional Investor]

Sustainable eggs are hitting grocery store shelves for as much as $8 a dozen. The "regenerative agriculture" used to raise the chickens could be the next big thing. [Bloomberg]

Since yesterday, the PitchBook Platform added:

27

VC valuations

1626

People

433

Companies

21

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2012 Vintage Global Buyout Funds
	VC Deals
	Homeward collects $371M in debt and equity
	Esco Lifesciences raises $200M Series A
	SpotOn secures $125M in a16z-led round
	Wayflyer banks $76M Series A
	TerraClear brings in $25M
	Exits & IPOs
	Paytm looks to raise $3B in IPO
	Acorns to go public via SPAC

The Daily Benchmark

2012 Vintage Global Buyout Funds

Median IRR

14.30%

Top Quartile IRR Hurdle Rate

19.99%

1.53x

Median TVPI

Select top performers

Clearlake Capital Partners III

BVIP Fund VIII

Parthenon Investors IV

*IRR: net of fees

99 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Homeward collects $371M in debt and equity

Homeward, a developer of real estate management software, has raised $136 million in equity led by Norwest Venture Partners, with participation from Blackstone Alternative Asset Management and others. The fundraise also includes $235 million of debt financing. Based in Austin, Homeward brought in $105 million of debt and equity in May 2020.

Additional Investors:

Adams Street Partners, Javelin Venture Partners, LiveOak Venture Partners, Breyer Capital

View round

View similar company »

Esco Lifesciences raises $200M Series A

Esco Lifesciences, a provider of technology, products and services for the life sciences and healthcare industries, has closed a $200 million Series A and crossover round led by Vivo Capital and Novo Holding A/S. The Singapore-based company manufactures products including pharmacy compounding tools, medical equipment for in vitro fertilization labs, and biological safety cabinets.

Additional Investors:

EDBI, China Investment Corporation

View round

View similar company »

SpotOn secures $125M in a16z-led round

SpotOn, a provider of payments software, marketing services and other solutions for small and medium-sized restaurants and retailers, has raised $125 million in Series D funding at a valuation of over $1.87 billion. Andreessen Horowitz led the round, with participation from DST Global, 01 Advisors, Dragoneer Investment Group, Franklin Templeton and Mubadala. The San Francisco-based startup employs 1,200 people and has added almost 8,000 new customers to date in 2021. SpotOn was valued at $560 million last year, according to PitchBook data.

View round

View 37 competitors »

Wayflyer banks $76M Series A

Wayflyer has raised $76 million in a round led by Left Lane Capital, with participation from investors including DST Global, QED Investors, Zinal Growth, Speedinvest and the family office of Guillaume Pousaz. Founded in 2019, the company is the developer of a platform that provides revenue-based financing and analytics solutions to ecommerce brands.

View round

View similar company »

TerraClear brings in $25M

TerraClear has raised $25 million in a round led by Madrona Venture Group. Operating out of the Seattle area and Idaho, the company uses AI and robotics technology to remove rocks from fields, improving farmers' productivity and reducing the chance of equipment breakage. TerraClear's rock picker removes an average of 400 rocks per hour.

View round

View similar company »

Exits & IPOs

Paytm looks to raise $3B in IPO

Mobile payments giant Paytm could raise 218 billion rupees (about $3 billion) in what is expected to be India's largest-ever IPO, Bloomberg reported. The company is reportedly planning for a November listing that would value it at between $25 billion and $30 billion. Paytm has received backing from SoftBank, Alibaba and Ant Group.

View details

View 52 competitors »

Acorns to go public via SPAC

Acorns, a savings and investment startup, has agreed to go public via a merger with a SPAC called Pioneer Merger Corp. The deal would value the combined company at roughly $2.2 billion. Institutional investors Wellington Management, Greycroft, BlackRock and TPG's global impact investing platform also committed to an oversubscribed private placement. The company's private market investors include Nyca Partners, Greycroft, Bain Capital Ventures and celebrities such as baseball legend Alex Rodriguez.

View details

View 29 competitors »