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Klarna buys Hero, an e-comm tech startup, as it expands beyond buy now, pay later

The deal will run Klarna about $160 million, sources told The WSJ.
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Francis Scialabba

less than 3 min read

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

Klarna held out for a hero. On Friday, the fintech company said it bought Hero, an e-comm tech startup, as it expands into social commerce.

  • The deal will run Klarna about $160 million, sources told the WSJ. Whether it pays later is 🤷.
  • The company earlier acquired Toplooks, an AI tech platform that specializes in shoppable content.

The setup: Hero connects online shoppers with retail employees via texts, videos, and virtual chat rooms through its app. Better customer service = more $$.

  • The London-based company was founded in 2015 and already works with brands like Levi’s, Rag & Bone and Chloé. There’s also some overlap with Klarna's existing roster, including Nike and Adidas.
  • For those not in the know, Klarna will intro Hero to its 250,000 partners.

The payoff: Klarna wants to turn retailers into personalities and content creators, rather than just brands. “We see a huge opportunity to leverage Hero’s existing platform and expertise to allow in-store retail professionals to become global brand ambassadors,” CEO Sebastian Siemiatkowski said in a statement.

  • Staffers are the new influencers, and retailers are rushing to build brand ambassador programs to tap into that trust.—JG

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.