In an indication of the occasions, Swedish purchase now, pay later big Klarna is reportedly near inking a brand new spherical of funding that will slash its valuation to $6.5 billion — about 1/7 of what the corporate was valued in June of 2021.
The Wall Avenue Journal reported in the present day, citing nameless sources, that Klarna was “negotiating to lift about $650 million principally from present buyers led by Sequoia Capital.” Sequoia chairman Michael Moritz can also be chairman of the embattled funds big.
The deal remains to be within the works, reported the Journal. But when accomplished, it should symbolize an enormous fall from grace for Klarna, which was driving excessive final 12 months when it raised $639 million in a spherical led by SoftBank’s Imaginative and prescient Fund 2 at a $45.6 billion valuation.
Klarna has been making an enormous push into the US, competing with the likes of publicly traded Affirm. In early June, Klarna stated that over the previous 12 months, its “U.S. buyer base has grown by over 65%, reaching over 25 million customers.” The entire BNPL (purchase now, pay later) phase has taken successful as of late, however nonetheless, the large drop in valuation for Klarna provides new which means to the phrase “down spherical.”
Nob6 has reached out to Klarna for remark.
My weekly fintech e-newsletter, The Interchange, launched on Might 1! Enroll right here to get it in your inbox.