Klarna snaps up London ecommerce tech startup Hero
Klarna has acquired London-based ecommerce tech startup Hero in a deal worth a reported $160m (£115m).
Hero, which was founded in 2015, offers virtual shopping services to retailers and counts Harvey Nichols, Levi, Nike and JD Sports among its clients.
Klarna said it will introduce Hero to its 250,000 retail partners, allowing them to access its online content offering, which includes reviews and real-time advice.
Financial details were not disclosed, but the Wall Street Journal reported that Klarna will pay around $160m for Hero.
Hero’s total workforce of more than 100 people will join Klarna, the companies said.
“Immersive shopping experiences are now expected by consumers when shopping online and forward-thinking brands want to provide consumers with a rich, interactive way to shop for their products,” said Klarna chief executive Sebastian Siemiatkowski.
“With Hero we share an ambition to elevate the shopping experience through the convergence of online and in-store shopping experiences, supporting retailers to inform and engage consumers in new ways.”
Hero founder Adam Levene said: “Klarna is a company we’ve long admired. They have built an iconic brand and proposition, and a unique culture that makes it the perfect home for our team.
“By joining forces we are able to bring our technology to even more merchants and consumers across the world, making online shopping more social, interactive and ultimately more human.”
In June Klarna raised $639m from a group of investors led by SoftBank’s Vision Fund II, lifting its valuation to about $46bn.
The Swedish buy now pay later group became Europe’s most valuable startup in March when a $1bn fundraising valued it at $31bn.
The company is now gearing up for a stock market float, but boss Siemiatkowski has said Klarna is likely to choose the US for a listing, marking a blow to London.