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Report: Klarna slashes fundraising expectations

Lucinda Shen
Jun 17, 2022
Illustration of a plastic "thank you bag" that instead reads "IOU" repeated
Illustration: Sarah Grillo/Axios

Swedish buy-now-pay-later company Klarna is reportedly seeking to raise funding at a fraction of its prior valuation as investors sour on consumer-facing lending startups.

Why it matters: It is, so far, one of the most dramatic examples of a fintech coming back to reality after last year's venture capital frenzy. Last valued at $45.6 billion, Klarna is now reportedly seeking to raise at a $15 billion valuation, per the Wall Street Journal.

Why it's the BFD 2.0: This is possibly bad news not just for Klarna, but for a whole host of investors who bought into the company at far higher prices than $15 billion.

  • SoftBank — which is already dealing with losses throughout its Vision Fund — led the company's last round of funding, valuing it at the aforementioned $45.6 billion.

Context: Citing sources, the Journal reports that Klarna is in talks about a deal that could raise $500 million after failing to find investors willing to buy in at a $30 billion valuation.

  • This all comes after Klarna posted revenue of $1.6 billion for last year, up 38% from the year prior and a loss of about $694.8 million.

What they're saying: "The story is pure speculation and we do not comment on fundraising or valuation speculation," a Klarna spokesperson wrote in an emailed statement.

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