The Sweden-based specialty lending and online payments provider is negotiating to raise about USd 650 million mostly from existing investors led by Sequoia Capital, according to sources cited bu The Wall Street Journal.
The deal has yet to be completed and could still hit last minute snags. But if completed, it would represent a discount on the company’s valuation when investors led by an arm of SoftBank Group valued Klarna at USD 45.6 billion in June 2021.
Klarna’s core offering, known as Buy Now, Pay Later, is embedded in online checkout pages for retailers such as Macy’s and Bed Bath & Beyond. Consumers use Klarna to break up payments over time for things they order online. It competes directly with credit-card companies
Klarna is licensed as a bank in Sweden, and the fundraising was also necessary to keep up with more stringent Swedish bank capital requirements, The Wall Street Journal reported, citing people familiar with the company.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now