Klarna sells its Checkout solution, to refocus on core business

By Gloria Methri

Klarna is selling its online checkout solution to a group of investors led by Kamjar Hajabdolahi, CEO & Founding Partner at BLQ Invest. The buyers will officially assume ownership of Klarna Checkout (KCO) on October 1 and Klarna’s payment methods will continue to be offered in the checkout.

The sale of KCO will allow Klarna to focus on its core business and flexible payment methods, which it offers in conjunction with multiple service providers.

Launched in 2012, Klarna Checkout works directly with merchants to help them offer its BNPL payment options. The business is successful in the Nordics, with a 20% market share that rose to 40% in Sweden.

However, the company has increasingly focused on working with payment service providers like Stripe and Adyen as distribution partners and has not actively built KCO since 2021.

According to reports, the divestment of KCO would reduce conflicts of interest with PSPs and allow the online checkout business to grow under new ownership.

“Klarna Checkout is very dear to me, and the impact it’s had on Klarna’s journey is immense. I’m so pleased it’s finding a new home with owners who are carefully handpicked to continue to create outstanding value for our merchant partners. I look forward to working closely with them as they establish the next phase for KCO”, said Sebastian Siemiatkowski, CEO and co-founder of Klarna.

The buyer consortium is led by Hajabdolahi and includes Systematic Growth, founded by Ashkan Pouya and serial entrepreneur Martin Randel. As per reports, the deal involves equity and debt financing, with performance-based incentives and revenue-sharing agreements.

“We are thrilled to acquire Klarna Checkout, and our ambition is to build on the solid foundation established by Klarna and take KCO to the next level, continuously evolving the product to meet the needs of our merchant partners and drive the future of e-commerce,” said Kamjar Hajabdolahi, CEO & Founding Partner at BLQ Invest. “We look forward to engaging with our merchant partners and presenting our plans and roadmap for the continued evolution of KCO.”