klarna: Klarna, the European fintech major, seeks to raise $ 1 billion at a lower valuation: report

Swedish Buy now Pay later (BNPL) giant Klarna is seeking to raise about $ 1 billion from investors with a valuation of $ 30 billion, a 30 percent drop from its current value, the Wall Street Journal reports.

Klarna had become Europe
the most valuable fintech startup last year after soft bankVision Fund 2 conducted a funding round, giving it a valuation of $ 45.6 billion.

The company was previously in talks with investors to raise funds at a $ 50 billion valuation, but has seen some investors retrace their steps due to volatile market conditions and a slowdown in funding.

BNPL companies have faced intense competition from traditional lenders and companies such as PayPal lately. While regulators are also mounting pressure, with the UK government last year saying it would start regulating BNPL products to protect consumers.

Klarna makes money by charging merchants who use its services. The company processed $ 80 billion worth of transactions last year, up from 42% in 2020.

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