Specialty lender Klarna’s ability to raise fresh funds has been a barometer of investor appetite in technology companies. The deal would be a huge comedown for the company, which investors valued at $45.6 billion in 2021, WSJ reports.
Klarna Bank AB is nearing a deal to raise new money at a valuation of around $6.5 billion, according to people familiar with the matter
The Sweden-based specialty lending and online payments provider is negotiating to raise about $650 million mostly from existing investors led by Sequoia Capital, the people said. Michael Moritz, who is a partner of the well-known venture-capital firm, also serves as chairman of Klarna.
The valuation would represent a massive discount from last June’s $639 million funding round, when the firm was riding the buy now, pay later wave.
In February, it was rumoured to be weighing a raise at a valuation of up to $60 billion.
However, it has since reported soaring operating losses of $748 million for the full year 2021 and outlined plans to lay off 10% of staff as it has faced up to a faltering economy and rising interest rates.
In May, Bloomberg reported that the company was planning to ask new and existing backers for as much as $1 billion in a deal that could put its post-money valuation in the low $30 billion range.
Just a month later, it appears to be settling for significantly less.
Banking 4.0 – „how was the experience for you”
„To be honest I think that Sinaia, your conference, is much better then Davos.”
Many more interesting quotes in the video below:
