Klarna, the AI-powered global payments network and shopping assistant, has entered into a strategic multi-year agreement with a subsidiary of funds advised by Elliott Advisors (UK) Limited for the sale of the majority of its short-term, interest-free product receivables in the UK. While Klarna will continue to manage consumer-facing activities such as underwriting and servicing, this deal is expected to fund over $39 billion in volume throughout its duration. This agreement aligns with Klarna's goal to efficiently manage its capital, allowing for better deployment of shareholder equity to support global demand for its services.
Klarna has experienced significant growth in the UK market, with over ten million British consumers using its services in the past year. Additionally, the number of UK retailers partnering with Klarna has increased by 33%, now surpassing 40,000. According to Niclas Neglén, Klarna's Chief Financial Officer, this partnership strengthens Klarna’s global expansion efforts and enhances its capital offloading platform. As Klarna continues its mission to become a leading commerce network, this deal will provide the financial flexibility needed to support the company’s ongoing growth and innovation for consumers and merchants worldwide.
