Klarna is planning to raise new funds which could boost its value to between $50billion and $60 billion, according to sources reported by Bloomberg.

The sources said that the Swedish Buy Now, Pay Later (BNPL) firm hasn’t finalised a precise price target for the funding, and that it is looking to attract sovereign wealth and pension funds as new investors.

In addition, the news organisation’s sources said that Klarna is considering allowing its existing backers to sell some of their holdings as part of the fundraising and that it is exploring raising debt financing from banks to help fund its expansion plans.

The news comes after Klarna announced equity funding of $639 million in June 2021 in a round led by SoftBank’s Vision Fund 2.

The overall BNPL space has been attracting significant investment in the past year.

In August, Klarna rival Zilch raised $110 million from Goldman Sachs and DMG Ventures, the investment arm of the Daily Mail group.

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