Report: Klarna slashes fundraising expectations
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.