Alma Raises $59.4M to Expand 'Klarna-like' Payment Option

The French company Alma is securing $59.4 million in a Series B funding round, equivalent to €49 million. The firm is developing a novel payment solution designed for higher-priced purchases. Customers have the flexibility to settle their purchases through three or four installments. This approach bears resemblance to services like Klarna, though Klarna does not currently operate within France.

This funding round includes investments from Cathay Innovation, Idinvest, Bpifrance’s Large Venture fund, Seaya Ventures, and Picus Capital. Alongside the equity investment, Alma is also securing a $25.5 million (€21 million) credit line to support payments to its merchants.

A key benefit for businesses utilizing Alma is the complete assumption of risk associated with installment payments. For example, when a customer purchases an item like a bicycle with a four-installment plan, the merchant receives full payment immediately, while the customer’s charges are spread out over time.

Since initial coverage, Alma has introduced a “pay later” feature. This allows customers to submit their payment details upfront but defer the charge for a period of 15 days or a month. This can be especially beneficial for purchases where the customer may be uncertain or anticipates a potential return.

This offering is particularly appealing in France, where debit card usage is more prevalent than credit card use. Alma also intends to introduce extended payment schedules, enabling customers to pay over 6, 10, or 12 installments.

With this new capital, the company aims to expand its team threefold and achieve an annual payment volume of €1 billion within the next two years. Expansion into new markets is also planned, with a primary emphasis on assisting French businesses in reaching customers throughout Europe.