In an indication of the instances, Swedish purchase now, pay later large Klarna is reportedly near inking a brand new spherical of funding that might slash its valuation to $6.5 billion – about 7x of what the company was valued in June of 2021.
The Wall Road Journal reported right this moment, citing nameless sources, that Klarna was “negotiating to lift about $650 million principally from present buyers led by Sequoia Capital.” Sequoia chairman Michael Mortiz can also be chairman of the embattled funds large.
The deal continues to be within the works, reported the Journal. But when accomplished, it’s going to characterize a giant fall from grace for Klarna, which was using excessive final yr 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 a giant push into the USA, competing with the likes of publicly-traded Affirm. In early June, Klarna stated that over the previous yr, its “U.S. buyer base has grown by over 65%, reaching over 25 million customers.” The entire BNPL (purchase now, pay later) section has taken a success as of late however nonetheless, the massive drop in valuation for Klarna offers new which means to the phrase “down spherical.”