By Dominic Chopping
STOCKHOLM–Swedish investment firm Kinnevik AB said Tuesday that it has invested $22 million in corporate spending management provider Pleo’s $150 million funding round, participating above its pro rata share.
Kinnevik said the funds raised will be used to support the company’s growing customer base of more than 17,000, and the development of new spend-management features on its platform.
The $150 million financing round ascribes Pleo a valuation of $1.7 billion, which implies a value of Kinnevik’s investment amounting to 1.9 billion Swedish kronor ($222.2 million).
In Kinnevik’s first-quarter 2021 results, its investment in Pleo was valued at SEK434 million.
“Drawing on the valuation in the round, Pleo’s continued strong operational performance and its increasingly strong outlook, Kinnevik believes there are strong enough reference points for a valuation of Kinnevik’s investment in Pleo in line with what is ascribed it in the funding round,” the company said.
“This corresponds to a net asset value uplift of approximately SEK1.3 billion or SEK4.5 per Kinnevik share,” it added.
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