Stockholm-based fintech giant Klarna announced on Monday that it has raised $800M (approximately €798.54M) in funding at a post-money valuation of $6.7B (approximately €6.68B).
This valuation is down nearly 85 per cent from the $45.6B (approximately €45.51B) price tag the retail bank, payments, and shopping service provider attracted in June, 2021, but in line with the decline in the valuation of its peers
In a statement, Klarna blames its falling valuation on “the worst set of circumstances to afflict stock markets since World War II: high inflation, rising interest rates, growing recessionary fears, the effects of the first pandemic since 1918, difficulties in conducting business due to supply chain disruptions, rising gas prices, and, particularly in Europe, the disruptions brought on by the conflict in Ukraine.”
Investors in this round
Despite the challenges, Klarna received strong backing from its existing investors, including Sequoia, the founders, Bestseller, Silver Lake, and Commonwealth Bank of Australia.