Klarna Bank AB, one of Europe’s most reputed financial institutions startup had officially said it had reached an agreement to acquire e-commerce technology company Hero Towers Ltd.
This move is expected to expand the presence of Klarna Bank in online shopping space.
About Start-Up Hero Towers
The London-based e-commerce start-up company Hero connects online shoppers and retailers through text messages, videos and online chat services.
It helps retailers selling products of major brands like Nike and Adidas to compete with Amazon.com Inc. by offering better customer services and sales support, according to Hero’s founder, Adam Levene.
Karlna has agreed to pay about $ 160 million, according to people familiar with the deal.
Klarna Business Model
Klarna itself operates the buy-now-pay-later business services, a growing form of pre-payment that allows retailers to offer customers a way to pay for goods and services gradually without interest.
Karlna’s revenue comes in by charging merchants some money/commission. It competes with traditional credit card companies.
The corporate valuation of startup companies such as Klarna have risen over the past 12 months as the the COVID pandemic has led to online spending. Klarna processed $53 billion-worth of transactions in 2020, up 46% on the previous year.
