Klarna has announced that it has raised $460m in an equity funding round at a post-money valuation of $5.5bn.

The funding round was led by Dragoneer Investment Group, a San Francisco-based investor. Other investors includes Commonwealth Bank of Australia, HMI Capital LLC, Merian Chrysalis Investment Company Limited, Första AP-Fonden (AP1), IPGL, and IVP.

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This makes Klarna the largest private fintech in Europe.

The funding will help Klarna continue its rise in the US. In the US, Klarna is currently growing at six million new customers a year.

Recentyly, Klarna launched a shopping app which allows its users to shop with Klarna at any store of brand online. More than 50% of the app’s users make a purchase each week.

Klarna currently powers over 3,000 merchants in the US and helps them with their customer acquisition goals. In addition, global brands H&M,  Abercrombie & Fitch and Boohoo Group will soon go live with Klarna.

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Sebastian Siemiatkowski, co-founder and CEO of Klarna: “This is a decisive time in the history of retail banking. Finally, transparency, technology and creativity will serve the consumer, and there will be no more room for unimaginative products, non-transparent terms of use or lack of genuine care of ones customers. We, all 2500 of us at Klarna, are humbled and honoured, and now also further empowered, to play a role in this improvement of an industry for the benefit of the consumer, worldwide and in the US in particular. ”

Marc Stad, Founding Partner at Dragoneer: “Our strategy is to partner with a small number of disruptive, growth companies that are highly differentiated and run by world-class management teams. Sebastian and the Klarna team have built an exceptional payments business with a global footprint, operating in a huge addressable market with strong tailwinds.”

Richard Watts, Merian Chrysalis Investment Company: “Klarna has built a highly-impressive, digital payment ecosystem, trusted by both retailers and consumers. By simplifying and improving the flexibility of the payments process, retail partners working with Klarna have seen considerable improvement in customer engagement and sales. Klarna is one of Europe’s great fintech success stories and the company continues to develop truly innovative payment solutions. This latest funding round will enable the company to execute on its ambitious international growth plans.”

Furthermore, Klarna expanded its partnership with online fashion retailer ASOS today to include the US.