Klarna, the buy-now-pay-later credit provider, is trying to finalise a fresh capital injection likely to value it at less than $10bn – just 20% of its worth only two years ago.
Sky News has learnt that the Swedish company has asked investors to commit in the coming days to a fundraising that is expected to close within weeks, as early-stage companies rush to shore up their balance sheets in anticipation of a torrid economic period.
Banking sources said on Friday that Klarna had yet to finalise its new valuation, and cautioned that it was likely to settle below the $10bn mark, although it could yet be marginally above that level.
It is understood to be planning to raise approximately $600m, although that figure, too, could yet change.
Former Man City executive Tom Glick to take top Chelsea job
Premier League takes gamble on betting company compromise
‘Cryptoqueen’ Ruja Ignatova added to FBI’s Most Wanted list
Existing Klarna backers including Sequoia Capital and Silver Lake are said to be planning to participate in the latest funding round for a company which has grown at breakneck speed in recent years to become one of Europe’s most richly-valued technology companies.
Its other shareholders include SoftBank’s Vision Fund.
Two years ago, it raised funds at a $45.6bn valuation, while in the last six weeks alone, the Wall Street Journal has reported that the company was seeking funds at valuations of $30bn, then $15bn, and then as low as $10bn.
Its fading valuation ambitions are partly the result of changing economic circumstances, with investors increasingly shunning tech-focused growth companies, partly increased regulatory scrutiny, and partly the emergence of behemoths such as Apple in the buy-now, pay-later sector.
A Klarna spokeswoman said: “We do not comment on fundraising nor valuation speculation”.
Silver Lake declined to comment.
