When researching the latest in fintech trends, it's important to keep your scope global in nature. 

While Klarna may not be known by many in the U.S., the Swedish-based payments firm announced last week that it had completed a new $460 million capital raise, placing its valuation at $5.5 billion USD.  The most recent funding round, led by San Francisco-based Dragoneer Investment Group, now positions the firm as the largest private fintech company in Europe, and one of the largest in the world.

Klarna allows individuals to “Shop Like a Queen” at a host of retailers, including many in the U.S., and either pay for their purchase interest free in four equal installments or 30 days later. It also offers financing for three to 36 months.

Ultimately, Klarna is positioned to compete with credit cards, hence Visa’s investment in the firm. Prior investors include Sequoia Capital, Bestseller Group, Permira, Visa and Atomico, among others. The firm works with more than 130,000 merchants in 14 countries including such notable retailers as H&M, Adidas, IKEA, Expedia Group, Abercrombie & Fitch, Michael Kors, Nike, Sephora, Spotify and Wayfair, amongst many others.  Revenue is said to be approaching $1 billion annually. 

This new funding will help Klarna to continue its rapid growth in the U.S. market, where it has captured 6 million new U.S. consumers, accounting for one-tenth of the firm’s worldwide 60 million user base.

Notably, one of the firm’s most high-profile investors is the rapper Snoop Dogg, who in a press release stated, “I’ve been looking for an opportunity to expand my tech investment portfolio to Europe and seeing the way Klarna operates and how they challenge the status quo, I think it’s a match made in heaven. I’m very excited about this partnership.”

This past January, Klarna also announced its collaboration with Snoop Dogg in a series of commercials promoting the rapper as the face of the firm’s “Get Smoooth” campaign, which later went viral.

With such a high market valuation, the firm may likely be considering an IPO in the future.