Klarna Bank AB is now the highest valued private fintech company in Europe. It has raised $650 million in a funding round, bringing its total value to $10.6 billion, according to a report by CNBC.

The company offers shoppers interest-free financing for retail purchases with its "buy now, pay later" model. Its app has more than 12 million monthly active users in the world.

"Klarna is one of the most disruptive and promising fintech companies in the world, redefining the ecommerce experience for millions of consumers and global retailers, just as ecommerce growth is accelerating worldwide and rapidly shifting to mobile," Jonathan Durham, managing director of Silver Lake Partners, a Klarna investor, said in a press release.