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Klarna sells UK loan portfolio to hedge fund Elliott Advisors in £30bn deal

  • Klarna has signed an agreement with a subsidiary of Elliott Advisors (UK) Limited to sell “substantially all” of its short-term, interest-free product receivables in the UK.
  • Klarna will retain ownership of all consumer-facing activities, including underwriting and servicing.
  • Klarna’s CFO, Niclas Neglén, states the deal aligns with the company’s global growth strategy and frees up an estimated £30 billion in funds to use more effectively.
  • The agreement is part of Klarna’s preparations for a potential stock market debut expected next year.
  • Earlier strategic moves include:
    • $515 million sale of Klarna Checkout in June.
    • Acquisition of New Zealand-based BNPL firm Laybuy in August.
  • Klarna has served 10 million UK customers in the past year, with a 33% increase in UK retailers using its services, now totaling over 40,000.

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