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”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
