TIDMCHRY
RNS Number : 6978Q
Chrysalis Investments Limited
01 March 2021
The information contained in this announcement is restricted and
is not for publication, release or distribution in the United
States of America, any member state of the European Economic Area
(other than to professional investors in the Republic of Ireland),
Canada, Australia, Japan or the Republic of South Africa.
This announcement contains inside information.
1 March 2021
Chrysalis Investments Limited ("Chrysalis" or the "Company")
Portfolio Update
As announced on 26 February 2021, the Company's net asset value
("NAV") per ordinary share was 180.75p as of 31 December 2020.
Today, the Company can report that Klarna Holding AB ("Klarna")
has announced the success of a $1bn funding round that values the
company at $31 billion post new money.
The round, which was four-times oversubscribed, has been
undertaken at a valuation that represents a material mark up in the
Company's current carrying value of the asset. Given investment
restrictions, the Company did not participate in the round.
It is estimated that the revised valuation of the Company's
investment in Klarna due to this funding round would result in a
gross increase in the NAV per ordinary share of approximately 32p
(based on Swedish Krona foreign exchange rates as of 26 February
2021) as compared to the Company's last reported NAV per ordinary
share. Shareholders should note that the gross increase does not
include the fees that may accrue as a result of the changes to this
valuation, or any other portfolio company revaluations and
associated foreign exchange movements that may be included when the
Company next calculates its NAV per ordinary share as at 31 March
2021.
The significant increase in the valuation of Klarna, compared
with the valuation of $10.65 billion achieved in September 2020,
reflects the business's strong growth over 2020, the highlight of
which was approximately a 40% increase in revenue to c$1.2bn (c$850
million in 2019). Gross merchandise volumes grew 48% in 2020 on a
constant currency basis having accelerated across the year. Within
this, the US is showing exceptional growth. Klarna experienced a
200% increase in monthly active US users year-on-year in December
2020, with a million customers a month being added over 4Q 2020,
taking total US customers to 15 million by January 2021. Over the
course of 2020 its app was downloaded close to 4 million times more
in the US than its nearest competitor. Klarna launched its pay
later offering in four new markets in 2020: Australia, Belgium,
Spain and Italy with four further market launches expected during
2021.
The new round saw significant interest from a wide range of new
investors and from Klarna's existing shareholder base. As a result
of the round, Klarna is now the highest-valued private fintech in
Europe and the second highest globally. The proceeds of the latest
funding round will enable Klarna to accelerate international
expansion and further capture global retail growth. In addition, 1%
of the capital raised will be committed to a new initiative to
focus on key sustainability challenges around the world.
Nick Williamson and Richard Watts (co-portfolio managers)
comment:
"Klarna's strong growth over the last twelve months and
exceptional market position and proposition have now been reflected
in this significant valuation uplift, which confirms its position
as one of the world's leading fintech companies.
We believe this funding round demonstrates many major, global
investors have endorsed Klarna's business model and trajectory of
growth, and see material valuation upside potential in the Klarna
investment case from this new valuation level. We concur with this
view. Buy Now, Pay Later's share of online checkout was c0.9% in
2019 in the US, versus nearly 6% in Europe (Source: Worldpay Global
Payments Report). This low penetration in one of the biggest online
markets in the world, succinctly highlights the significant growth
opportunity still ahead for Klarna.
The substantial oversubscription of this round also demonstrates
how difficult it can be to access this type of investment,
particularly for retail investors, further demonstrating the
attractiveness of the Chrysalis proposition to a wide investor
audience. We look forward to supporting Klarna through its
ambitious plans for 2021 and beyond as it confirms its status as a
market leader and enters its next stage of growth."
-ENDS-
For further information, please
contact:
Media: +44 (0) 20 3770 7920
Montfort Communications chrysalis@montfort.london
Charlotte McMullen/ Toto Reissland-
Burgh art/ Miles McKenzie
Jupiter Asset Management:
Magnus Spence +44 (0) 20 3817 1325
Liberum:
Gillian Martin / Owen Matthews +44 (0) 20 3100 2000
Numis:
Nathan Brown/ Matt Goss +44 (0) 20 7260 1000
Maitland Administration (Guernsey)
Limited:
Elaine Smeja / Aimee Gontier +44 (0) 1481 749364
LEI: 213800F9SQ753JQHSW24
A copy of this announcement will be available on the Company's
website at
https://www.jupiteram.com/uk/en/professional/chrysalis-investments-limited/
The information contained in this announcement regarding the
Company's investments has been provided by the relevant underlying
portfolio company and has not been independently verified by the
Company. The information contained herein is unaudited.
This announcement is for information purposes only and is not an
offer to invest. All investments are subject to risk. Past
performance is no guarantee of future returns. Prospective
investors are advised to seek expert legal, financial, tax and
other professional advice before making any investment decision.
The value of investments may fluctuate. Results achieved in the
past are no guarantee of future results. Neither the content of the
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into, or forms part of, this announcement nor, unless previously
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Company.
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END
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