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Klarna Investors Asked to Commit Funding as Value Drops to $10B | business news

Klarna, the buy-it-now, pay-later loan provider, is trying to complete a new capital injection that’s expected to be worth less than $10 billion — just 20% of what it was two years ago.

Sky News has learned that the Swedish company has asked investors to commit to a fundraising in the coming days, which is expected to be completed within weeks, as early-stage companies look to shore up their balance sheets in anticipation of a hot economic cycle.

Banking sources said on Friday that Klarna had not yet finalized its new valuation, warning that it was likely to settle below the $10 billion mark, although it could still be marginally above that level.

It is believed the plan is to raise approximately $600 million, although that number is subject to change.

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.

Two years ago it raised funds with a valuation of $45.6 billion, while in the last six weeks alone the Wall Street Journal reported that the company was raising funds with a valuation of $30 billion, then $15 billion and then sought as low as USD 10 billion.

Its flagging valuation ambitions are partly a result of changing economic circumstances as investors increasingly shun 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”.

Silver Lake declined to comment.

Klarna Investors Asked to Commit Funding as Value Drops to $10B | business news

Source link Klarna Investors Asked to Commit Funding as Value Drops to $10B | business news

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