This content is not available in your region

H&M takes stake in Swedish fintech firm Klarna - FT

H&M takes stake in Swedish fintech firm Klarna - FT
Logos of H&M are pictured on a store in Geneva, Switzerland, August 16, 2018. REUTERS/Denis Balibouse   -   Copyright  DENIS BALIBOUSE(Reuters)
Text size Aa Aa

(Reuters) – Fashion chain H&M <HMb.ST> is acquiring a stake in Swedish fintech company Klarna, the Financial Times reported.

The world’s second-largest clothes retailer is paying SEK 185 million (15.6 million pounds) for a stake of less than 1 percent in Klarna, which is issuing new shares to H&M, people involved in the transaction told FT.

The deal will start in 14 European countries, starting with the U.K. and Sweden, but has the scope to expand to the U.S. and Asia, according to Klarna, the FT reported. 

The deal promises to simplify H&M’s returns and delivery processes which has been a source of frustration to many customers as well as combining its in-store, online and mobile payments, the newspaper added.

Klarna Chief Executive Sebastian Siemiatkowski told the Financial Times that the deal would be the company’s largest partnership following similar deals with UK retailer Asos and furniture giant Ikea.

Traditional retailers like H&M have been facing increased competition in the online fashion market from e-commerce giants like Inc <AMZN.O>.

H&M and Klarna were not immediately available for comment.

(Reporting by Rishika Chatterjee in Bengaluru; Editing by Sunil Nair)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.