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Klarna, the Swedish buy now, pay later behemoth and upstart bank, has raised $1 billion in new funding at a post-money valuation of $31 billion. That sees the company retain the crown as the highest-valued private fintech in Europe.

Backers of this round are said to be a combination of new and existing investors, while Klarna claims it was four times oversubscribed. That’s likely prompted by reports the company is eyeing up a direct public listing and the current appetite for public tech stocks in general.

As a reference point, Affirm, which is viewed in the U.S. as one of Klarna’s most direct competitors, recently IPO’d.

In addition to confirming the new fund raise  which had been widely leaked given that there are dozens of frenzied investors involved Klarna is also announcing that the company will pledge 1% of the capital raised to a newly created initiative that focuses on “key sustainability challenges around the world”. The initiative will be formally launched April 22 on World Earth Day.

A very early mover in what is now widely called buy-now-pay-later (BNPL), Klarna has been built on the concept of giving consumers a way to buy things online without having to pay for them upfront, and without resorting to a credit card. It does this both by offering online retailer integrations where Klarna appears as an option at check out, and through its own “shopping mall” app, where users can browse all the stores that let you pay with Klarna.

On the back of this, the company hopes to foster a bigger financial relationship with its users as a fully fledged challenger bank. It has a range of licensed banking services, such as savings and current accounts, in Sweden and Germany, with more countries to follow.

On the BNPL front, Klarna is active in more than 17 countries, and has over 250,000 retail partners, including Macys, H&M, Ikea, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch, Nike and AliExpress.

The fintech has been backed by Sequoia Capital since 2010. More recent investors include Dragoneer, Bestseller Group, Permira, Visa, Atomico, Ant Group, Commonwealth Bank of Australia, Silver Lake, HMI Capital, TCV, Northzone, GIC (Singapore’s sovereign wealth fund) and funds and accounts managed by BlackRock.

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