Klarna in talks to raise new funds at around $6 billion valuation -source

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July 1 (Reuters) – Swedish payments firm Klarna Bank AB is set to strike a deal to raise around $6 billion in new capital from existing investors led by Sequoia Capital, according to a report. person close to the file.

The funding round is not yet finalized, but if completed, it would represent a dramatic drop in the valuation of a once high-flying, buy now, pay later (BNPL) company which, at a point, was Europe’s most valuable startup.

In an emailed statement, Klarna said, “As always, we do not comment on fundraising or valuation speculation.”

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Last year, Klarna raised more than $600 million from an investor group led by SoftBank’s Vision Fund II in a funding round that earned it a $46 billion valuation. more than many of the major banks in the region.

Klarna’s current fundraising troubles come amid a sharp decline in investor interest in fast-growing tech companies that have yet to turn a profit and burn tens of millions of dollars in cash.

Valuations have fallen and several big tech stocks have been beaten in recent months. Major BNPL players and Klarna competitors like Affirm Holdings Inc (AFRM.O) have lost more than 80% of their value this year alone.

The Wall Street Journal reported Klarna’s latest fundraising talks earlier on Friday.

In May, Klarna chief executive Sebastian Siemiatkowski told Reuters in an interview that the company was in talks with investors to raise more funds and had no plans to go public this year.

Klarna, one of the world’s hottest tech startups, was widely expected to go public this year, but the initial public offering market has crashed dramatically after a record-breaking 2021 due to market volatility. to the Russian invasion of Ukraine and a broader sell-off in tech stocks.

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Reporting by Manya Saini in Bengaluru, Supantha Mukherjee in Stockholm and Anirban Sen in New York; Editing by Shailesh Kuber and Leslie Adler

Our standards: The Thomson Reuters Trust Principles.

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