Investors cut Klarna's valuation by 85%

Klarna raised $800 million at a $6.7 billion valuation, confirming a sharp 85% cut to how investors once valued the Swedish BNPL.

Why it matters: It’s one of the most extreme examples yet of how far private market valuations have fallen. Klarna was once considered Europe’s most richly valued startup, with a $45.6 billion price tag.

Details: Existing investors included Sequoia, Bestseller, Silver Lake, and Commonwealth Bank of Australia. New investors include Mubadala Investment Company, the sovereign fund of the UAE, and Canada Pension Plan Investment Board.

Bottom line: “We are not immune to public peers being down 75-90% and hence our valuation is down on par,” writes CEO Sebastian Siemiatkowski.