The Swedish BNPL (Buy Now Pay Later) fintech extended the partnership with Elliott for operating in USA
On 24 March, Tuesday, Swedish Buy-Now-Pay-Later (BNPL) Klarna, a fintech NYSE-listed since September 2025 (press release and previous post by BeBeez), said it attracted a further 2 billion US Dollars from Elliott Investment Management that also extended the tenure of previous facilities by 12 months for a total of three years. Klarna can now issue loans of up to 17 billion US Dollars in USA (press release).
In November 2025, Klarna signed a forward-flow agreement with Elliott for the sale of a portfolio of “Fair Financing” credits worth up to 6.5 billion US Dollars in two years. The initial facility was worth in the region of one billion US Dollars and had a revolving structure plan relating to loan repayments.In October 2024, Klarna launched an initial credit sale transaction with Elliott in the UK, aimed at freeing up a capacity of over 30 billion GBPs in new volumes, a transaction consistent with a model increasingly focused on active balance sheet management and the rotation of credit assets (press release).
Such a new structure significantly expanded the company’s funding capacity, reflecting the strong growth of the business in the United States. In 4Q25, the US Financing segment recorded a significant increase in volumes, prompting Klarna to expand the dedicated capital allocation.
From a structural perspective, the agreement follows the same approach as the previous programme: Klarna originates the loans and sells them on an ongoing basis to Elliott’s funds, whilst retaining all core customer-facing activities, including underwriting and servicing. This scalable, off-balance-sheet form of financing enables the company to support growth without burdening its regulatory capital.
The transaction is part of Klarna’s evolution from a BNPL operator to a broader digital banking platform, against a backdrop of growing competition from traditional credit providers and other fintech players.Sebastian Siemiatkowski (ceo), Victor Jacobsson and Niklas Adalberth founded Klarna in 2025. The firm is a global digital bank and provider of flexible payment solutions, with over 118 million active users worldwide and 3.4 million transactions per day. Consumers can pay with Klarna online, in physical shops, and via Apple Pay and Google Pay. One million retailers rely on Klarna’s innovative solutions to drive growth and customer loyalty, including Uber, H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike and Airbnb. Prior to its listing, the scale-up raised several billion euros in numerous substantial funding rounds from leading international venture capital funds.
