Klarna is closing in on a funding spherical that may see the BNPL large’s valuation slashed from $45.6 billion final 12 months to simply $6.5 billion, in response to the Wall Avenue Journal.
Sweden’s Klarna is working to lift about $650 million, most of it from current buyers led by Sequoia Capital, says the Journal, citing nameless sources.
The valuation would signify a large low cost from final June’s $639 million funding spherical, when the agency was using the purchase now, pay later wave.
In February, it was rumoured to be weighing a increase at a valuation of as much as $60 billion.
Nevertheless, it has since reported hovering working losses of $748 million for the total 12 months 2021 and outlined plans to put off 10% of workers because it has confronted as much as a faltering financial system and rising rates of interest.
In Might, Bloomberg reported that the corporate was planning to ask new and current backers for as a lot as $1 billion in a deal that might put its post-money valuation within the low $30 billion vary.
Only a month later, it seems to be settling for considerably much less.