8.6 C
New York
Sunday, November 27, 2022
Home Uncategorized Klarna's valuation is down by 66% as the company looks for funding

Klarna’s valuation is down by 66% as the company looks for funding

For its new funding round, the Swedish BNPL giant could have to settle for a valuation of $15 billion according to the “Wall Street Journal”. 

This is 30 billion less than during its previous fundraising, a year ago. That round made Klarna the most valuable fintech startup in Europe.

Read also: Revolut launches in five more countries and grows in Spain

According to the “Wall Street Journal”, the Swedish fintech is currently in discussions with its investors to complete a round of funding of 500 million dollars, half of what the company hoped to obtain.

This would have significantly worsened the conditions, just a few weeks ago there were reports that Klarna wanted to raise one billion euros with a valuation of 28.5 billion euros.

Shortly thereafter, with reference to the unfavorable market environment, the company announced that it would lay off ten percent of its global employees – which corresponds to around 700 people.

At the same time, it became known that the pre-tax loss had tripled to minus 240 million euros in the first three months of the year.

The “vast majority” of Klarna employees are not affected by the measures, said co-founder Sebastian Siemiatkowski, but “some have been informed that we cannot offer them a role in the new organization”. “When we formulated our business plans for 2022 last fall, it was a very different world from the one we are in today,” said Siemiatkowski.

“Since then we have witnessed a tragic and unnecessary war in Ukraine, a shift in consumer sentiment, a spike in inflation, a highly volatile stock market and a probable recession,” he added.

Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

N26 study shows Spain has the highest savings ratio in Europe

N26 has recently analyzed the data of over 380,000 consumers in the main five European markets (Spain, Germany, Austria, France, and Italy), with the aim of discovering the saving and spending trends in 2022.

The UK Startup Atoa Payments has raised $2.2 million in a pre-seed funding round

Recently, the UK startup Atoa Payments has raised $2.2 million in a pre-seed funding round.  The interest in the...

Only 60% of fintechs are product-led according to a recent survey of 100 fintech product specialists

A recent global survey of 100 fintech product specialists from fintech brands like Wise, AMEX, and more, revealed that whilst 90% of fintechs have dedicated product teams, only 60% of them are considered to be product-led. 

INNOVATION IN THE WORLD OF CREDIT CARS

It’s a well-known fact, banks that do digital transformation get more clients. Sella decided to join the number of innovators and launched...