Connect with us

Featured

Fintech company Klarna to open a technology hub in Madrid

With the boost of the Madrid hub, Klarna will greatly expand the size of its current office, as it will be transformed into a global product development center. The fintech company, which last year raised a $1 billion (about €880 million) investment round, raising its valuation to $31 billion (about €25.7 billion), entered the market in Spain in the summer of 2020.

Published

on

Klarna, the second-largest fintech company in the world and the first in Europe, according to data from the consulting firm CBInsights, has chosen Madrid to open its new technology hub. The Swedish financial services company says it will hire a team of 500 engineers and qualified professionals to develop and enhance solutions for all its business areas. Among its clients are brands such as Mango, Adidas, Ikea, Samsung, Nike, Aliexpress, Expedia, and Michael Kors.

The multinational, founded in Stockholm in 2005 and which offers payment solutions (direct payments, payment options after delivery and installment payments), will make the announcement this Wednesday together with the mayor of Madrid, José Luis Martínez-Almeida, and Pablo Vázquez, general director of Madrid Futuro. Klarna thus adds Madrid to its network of technology hubs, as it already has others in Stockholm, Berlin, and Milan.

Read more about Klarna and its new technology hub with our companion app. Available fro free fro both Android and iOS devices, Born2Invest mobile app keeps its readers up to date with the latest business headlines in the world.

Klarna entered the Spanish market in 2020

The fintech company, which last year raised a $1 billion (about €880 million) investment round, raising its valuation to $31 billion (about €25.7 billion), entered the market in Spain in the summer of 2020 with an operations and sales team. Now, it is looking for engineers, product developers, designers and experts in data science and analytics, among other profiles. The company plans to incorporate the first of these profiles this year.

With the boost of the Madrid hub, Klarna will greatly expand the size of its current office, as it will be transformed into a global product development center. The company, which has 4,000 employees (1,400 engineers) worldwide, highlights that the announcement comes at a time when Madrid is trying to position itself as a European reference for the high-tech industry, in order to attract more investors and startups to the territory.

SEE ALSO  How do world leader's decisions affect your trades?

According to INE data, the capital accounts for 26% of R&D spending in Spain and already ranks as the third most important functional urban area in Europe. Sebastian Siemiatkowski, CEO of Klarna, highlighted that Madrid has “a huge pool of talent, good universities and more and more professionals who once explored a career outside Spain want to return.”

Among investors in Klarna, there are Visa and Atomico

Klarna, a leader in the buy now, pay later market, counts Sequoia Capital, Bestseller, Permira, Visa, and Atomico among its investors. The company, which allows users to defer payment of their purchases in several installments, without interest or creditworthiness studies, has 90 million end customers, works with 250,000 merchants, and handles two million transactions a day.

The company’s managers explained that they launched the project to facilitate online purchases, although they explain that their payment solutions are omnichannel and can be integrated in the checkout of the stores’ websites, in their online applications or in the physical stores.

Klarna has organized its operations in more than 450 teams, spread over three continents and with more than 90 nationalities. As the company explains, these teams operate as independent startups aligned with a common vision and mission. Each team is composed of approximately eight members, with different competencies and skills, and they acquire end-to-end responsibility for a problem or space related to the company’s global objectives. According to the firm, this helps them optimize the speed, flow and quality of their work, allowing them to scale their activity in a very short time.

SEE ALSO  Why every startup business should use niche marketing

__

(Featured image by Florian Wehde via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in Cinco Dias, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Desmond O’Flynn believes in minimalism and the power of beer. As a young reporter for some of the largest national publications, he has lived in the world of finance and investing for nearly three decades. He has since included world politics and the global economy in his portfolio. He also writes about entrepreneurs and small businesses, as well as innovation in fintech, gambling, and cannabis industries.