According to the Wall Street Journal, the Swedish fractional payments giant is close to closing a new round of financing that would increase its valuation from $45.6 billion last year to $6.5 billion. This new round of financing, which the fintech has been trying to close for months, would be around 650 million dollars, mainly from existing shareholders. It confirms the fall in valuations in fintech in recent months.
It’s like déjà vu of a financial bubble bursting. According to the Wall Street Journal, the Swedish champion of fractional payments (buy now pay later, BNPL) is in the process of closing its new round of financing, for an amount of $650 million, which would bring the fintech’s valuation down from $45.6 billion to just $6.5 billion. This fundraising would be subscribed from a pool of existing shareholders, led by Sequoia Capital, says the financial daily, citing anonymous sources.

This new valuation represents a drop of 85% compared to the valuation reached in June 2021 at the time of the previous round of financing of an amount of 639 million dollars, while Klarna is surfing in the middle of the BNPL wave in the world, in the wake of the explosion of post-covid online commerce. Rumors last February gave Klarna a valuation close to $60 billion.

But since then, bad news has been piling up about the company as the economic and financial environment has deteriorated deeply since Russia’s invasion of Ukraine. For the fiscal year 2021, the fintech announced an operating loss of $748 million and announced in May a plan to cut 700 jobs, or 10% of its workforce.