Klarna, the buy-it-later lending provider, is about to announce an $800 million financing at a valuation of less than $6 billion, reflecting deteriorating public market sentiment toward technology companies.
Sky News has learned that Klarna, which is based in Sweden, is expected to announce later this week that it has secured funding from existing investors and new financiers, which could include Canada’s largest pension fund.
Sources said on Sunday that the Canada Pension Plan Investment Board (CPPIB) and Abu Dhabi state investment fund Mubadala have been in talks with Klarna over the past few weeks about a stake in the capital raise.
At $800 million, the round of financing is larger than expected in recent weeks.
The new capital injection comes at a pre-money valuation of under $6 billion, less than 15 percent of Klarna’s $45.6 billion valuation just two years ago.
That would put Klarna at a post-money valuation of about $6.7 billion, according to a source.
The company’s valuation has plummeted in recent weeks, with various reports suggesting that Klarna CEO Sebastian Siemiatkowski has attempted to secure funding with valuations of $30 billion, then $15 billion, then $10 billion to secure.
Existing backers of Klarna, including Sequoia Capital and Silver Lake, are said to be planning to participate in the latest round of funding for a company that has grown at breakneck speed in recent years to become one of Europe’s highest-rated tech companies.
Other shareholders include SoftBank’s Vision Fund.
The falling valuation is partly a result of changing economic circumstances as investors increasingly avoid tech-focused growth companies, partly increased regulatory scrutiny, and partly the emergence of buy-now, pay-later giants like Apple.
A Klarna spokeswoman said: “We do not comment on fundraising or valuation speculation”.
CPPIB declined to comment.
Canadian pension fund backs $5.8bn buy-now-pay-later giant Klarna | UK News
Source link Canadian pension fund backs $5.8bn buy-now-pay-later giant Klarna | UK News