Sweden-based buy now, pay later (BNPL) fintech Klarna is planning to raise $500m at over $10bn valuation, Reuters reported.

The payments outfit is in talks with investors for the fresh funding, which the company will use to expand its footprint in the US.

The fintech firm intends to raise the money from old and new investors.

A potential deal is expected to be announced in the coming days.

The fundraising would nearly double Klarna’s valuation from $5.5bn as of August 2019, the report added.

With the funding, Klarna’s valuation will come close to Australian alternative credit firm Afterpay, which is valued at about $15bn.

Founded in 2005, Klarna allows shoppers to make online purchases and pay the bill amount in instalments, at participating merchants.

Klarna has 85 million customers and 235,000 merchant partners in the US and the UK.

The company is also looking to file for an initial public offering (IPO) within the next two years, in the US.

The latest funding round, if successful, will be Klarna’s last fundraising before the potential IPO, according to Reuters.

Sequoia Capital, Bestseller, Dragoneer, and Commonwealth Bank of Australia (CBA) are Klarna’s largest investors.

Developments at Klarna

This July, a report revealed that Klarna is planning a bricks-and-mortar rollout in Australia.

The firm recently also expanded its services to Spain with the launch of a BNPL service in the country called ‘Pay in 3’.

In June this year, Klarna launched in Belgium with a new payment offering for shoppers called ‘Pay in 21 days’.

In the same month, Klarna also teamed up with online deposit marketplace Raisin to open a savings account for German consumers.