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Klarna Acquires Online Commerce Start-Up Hero

July 16, 2021 BeautyMatter
July 16, 2021
Hero

Klarna will acquire Hero, a social shopping platform designed to provide consumers with inspiration, advice, and immediately shoppable content produced directly from retailers' physical stores.

WHO: Hero, based in London and New York, was founded in 2015 by Adam Levene to create a more personal and convenient way to shop that reflects how consumers interact today, bringing the concept of in-person customer service to e-commerce. Available from the merchant's website, Hero connects online shoppers with in-store product experts to provide inspiration and advice via messaging, video chat, and social-style content at the click of the button. Hero makes online shopping an interactive experience with all the benefits of in-store service, while allowing consumers to shop from wherever, and however, they wish.

Klarna is a global growth partner for its retailers, constantly expanding the suite of tools available to allow retailers to engage with consumers in new ways. Most recently Klarna acquired Shoptail, a comparison-shopping service that ensures retailers can effectively compete in the online ad space by giving consumers access to the best search-based deals, and Toplooks, an AI-powered styling engine that allows retailers to create shoppable content by suggesting complementary items to consumers across their web and social channels.

IN THEIR OWN WORDS: Adam Levene, founder at Hero, said: "Klarna is a company we've long admired. They have built an iconic brand and proposition, and a unique culture that makes it the perfect home for our team. By joining forces we are able to bring our technology to even more merchants and consumers across the world, making online shopping more social, interactive and ultimately more human."

Sebastian Siemiatkowski, CEO of Klarna, commented: "Immersive shopping experiences are now expected by consumers when shopping online and forward-thinking brands want to provide consumers with a rich, interactive way to shop for their products. With Hero we share an ambition to elevate the shopping experience through the convergence of online and in-store shopping experiences, supporting retailers to inform and engage consumers in new ways. We see a huge opportunity to leverage Hero's existing platform and expertise to allow in-store retail professionals to become global brand ambassadors. This will unlock growth for retailers by creating a new hybrid shopping experience that enables consumers to make informed purchasing decisions as part of an engaging and personalised shopping journey."

David Sandström, Chief Marketing Officer at Klarna, said: "With HERO, Klarna can support retailers in empowering their in-store colleagues to serve a global audience, enhancing e-commerce with the benefits of physical retail. Longer term, we see opportunities for Klarna's 90 million global consumers to share their shopping expertise as part of a social shopping ecosystem that defies physical and online boundaries, aligned to Klarna's mission to ensure people can shop, bank and pay in ways that suit them and their lives today. We look forward to welcoming the HERO team to Klarna."

DETAILS:

  • Klarna will acquire Hero for about $160 million, according to the WSJ.
  • Founder Adam Levene and Hero's approximately 100 employees will join Klarna.
  • Klarna will introduce Hero to its 250,000 retail partners.
  • In June 2019 Hero raised a $10 million series led by S28 Capital, with participation from Vectr Ventures and DIP Capital.
  • A $639 million fundraising round in June valued Klarna at more than $45 billion. In 2020, the company processed $53 billion worth of transactions, an increase of 46% on the previous year.
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