Klarna Says $1.6 Billion Warehouse Financing Facility Supports Growth Strategy

Klarna secured a warehouse financing facility with Santander that provides a total funding capacity of up to 1.4 billion euros (about $1.6 billion).

This marks the company’s first such facility with Santander as the sole lender and helps Klarna diversify its funding sources and support its growth, according to a Thursday (Aug. 21) press release.

“This is a key pillar of our growth strategy while at the same time enhancing the funding tools available to Klarna,” Klarna Chief Financial Officer Niclas Neglén said in the release. “This transaction demonstrates strong institutional confidence in Klarna’s platform, product performance and credit risk management.”

Klarna said Friday (Aug. 15) that it landed $26 billion in new funding as part of a multi-year agreement with financial services and investment firm Nelnet. Under the arrangement, Klarna will sell up to $26 billion in receivables from its “Pay in 4” installment program to Nelnet.

The deal will support the ongoing expansion of Pay in 4 in the United States, and the flow-forward structure of the funding underscores Klarna’s ability to carry out large-scale capital markets transactions, the company said.

“This is a landmark transaction for Klarna in the U.S.,” Neglén said in an Aug. 15 press release. “Our partnership with Nelnet allows us to scale a core product responsibly, while continuing to deliver smooth, interest-free payment experiences to millions of consumers.”

Klarna said in an Aug. 14 earnings release that its engagement with consumers and its expanding merchant ecosystem drove year-over-year revenue growth that accelerated to 20% in the second quarter, up from 15% in the first quarter.

The company’s second-quarter earnings results included $823 million in revenue, 111 million active Klarna consumers and 790,000 merchant partners.

It was reported July 31 that Klarna is considering launching its initial public offering in the U.S. in September after putting its IPO plans on hold in April amid the market turmoil caused by new U.S. tariffs.

Klarna announced in November that it confidentially submitted a draft registration for an IPO with the Securities and Exchange Commission. The company said March 14 that it filed for an IPO with the SEC.

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