Buy-now pay-later giant Klarna is looking to raise fresh cash at a slashed valuation of $15bn, according to news reports.
The Swedish fintech giant, which earned the title of Europe’s most valuable startup last year, is in talks with investors to raise funds totaling at least $500 million, around half of its earlier target of $1bn, the Wall Street Journal reported today.
Sources told the WSJ the deal would value the buy-now-pay-later provider at about $15bn, under a third of the value of the $46bn valuation 12 months ago and the $30bn value which was reported in May.
The firm has faced a downturn recently as it battles inflationary headwinds and rising interest rates, with boss Sebastian Siemiatkowski slashing the size of the firm’s workforce by around 10 per cent this month.
Investors globally are also growing wary of the technology in many jurisdictions as regulators prepare to swoop on buy-now pay-later products.
The Financial Conduct Authority is expected to draw up regulation for the sector this year after the Treasury produces the results of a consultation on how to regulate the sector this year.