Valuation of the Swedish fintech giant drops to $6.5 billion
Swedish giant eyes $650 million investment in the new round
The deal is still in the works for a round that would slash Klarna’s valuation to $6.5 billion
Klarna was riding last year at $639 million in a round by SoftBank’s Vision Fund 2 at a $45.6
Klarna has been pushing in the United States, competing with big firms like Affirm
A new round of funding that would reduce Klarna’s valuation to $6.5 billion, or around 1/7 of what it was valued in June 2021, is allegedly close to being agreed upon.
Klarna was negotiating to raise approximately $650 million from existing investors led by Sequoia Capital with the remainder coming from other investors. Michael Mortiz, chairman of Sequoia also serves as chairman of Klarna.
If the deal is successful it will begin a significant reversal of fortune for Klarna, which had already been successful after raising $639 million in a round led by SoftBank’s Vision Fund 2. Last year, the company’s valuation peaked at $45.6 billion.
In order to compete with companies like publicly traded Affirm, Klarna has been making a significant push on the American market. Early in June, they reported that their US customer base expanded by over 65% reaching over 25 million users.
