Payments firm Klarna's valuation rises to $46 billion after fundraising

FILE PHOTO: A smartphone displays a Klarna logo on top of banknotes is in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

STOCKHOLM (Reuters) -Swedish payments firm Klarna has raised $639 million from a group of investors led by SoftBank's Vision Fund II, lifting its valuation to about $46 billion - higher than several of the region's major banks.

Klarna, which allows shoppers to buy online through its merchant partners and settle their dues in instalments via "buy now, pay later" (BNPL), became Europe's most valuable startup in March when a $1 billion fundraising valued it at $31 billion.