Observed Signal · Jul 2, 2022 · Funding · Source: Trending Topics · Impact: 3/5 · Sentiment: Negative
Klarna Reportedly Seeks Funds at Slashed $6.5 Billion Valuation
According to a Wall Street Journal report, Swedish fintech Klarna is in talks with existing investors to raise $650 million at a valuation of $6.5 billion. This marks an approximately 85% decline from the $45.6 billion valuation the buy-now-pay-later provider received from investors including SoftBank, Sequoia Capital, and Silver Lake about a year earlier. CEO Sebastian Siemiatkowski previously laid off 700 of around 7,000 employees, warning of an approaching recession. Klarna reported a net loss of €668 million in 2021 and had targeted profitability by 2023, which the article says is no longer realistic under current economic conditions. The negotiations reportedly involve existing investors around Michael Moritz, chairman of Sequoia Capital and Klarna. The deal has not yet been finalized.
Major downround for a leading European fintech signals a sharp correction in e-commerce and digital economy valuations, with knock-on effects for investor sentiment and advertising budgets in the digital commerce space.
Track Klarna Signals & Market Shifts in Real-Time
Polaris7 autonomous intelligence agents track regulatory filings, primary sources, executive changes, and deal flow 24/7. Create your free Explorer workspace to monitor these entities.
Key Takeaways & Evidence Grounding
- Klarna is reportedly negotiating a $650 million funding round at a $6.5 billion valuation.
- The reported valuation is down about 85% from the $45.6 billion valuation Klarna received roughly a year earlier.
- The Wall Street Journal first reported the planned downround.
- Klarna's CEO Sebastian Siemiatkowski cut 700 jobs from its 7,000-person workforce, citing recession risks.
- Klarna recorded a net loss of €668 million in 2021.
Connected Companies & Entities
14 Entities mapped“Das schwedische Fintech Klarna, eine der wichtigsten europäischen privaten Tech-Unternehmen, bricht bei der Bewertung in sich zusammen....”
“glaubt man einem Bericht des Wall Street Journal...”
“Vor etwa einem Jahr noch haben einige der weltweit bekanntesten Investoren (SoftBank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commo...”
“Vor etwa einem Jahr noch haben einige der weltweit bekanntesten Investoren (SoftBank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commo...”
“Vor etwa einem Jahr noch haben einige der weltweit bekanntesten Investoren (SoftBank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commo...”
“Vor etwa einem Jahr noch haben einige der weltweit bekanntesten Investoren (SoftBank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commo...”
“Als auf E-Commerce fokussierter Anbieter von BNPL-Lösungen galt das Unternehmen neben einigen Branchen-Peers wie PayPal, Affirm oder AfterPa...”
“Als auf E-Commerce fokussierter Anbieter von BNPL-Lösungen galt das Unternehmen neben einigen Branchen-Peers wie PayPal, Affirm oder AfterPa...”
“Vor etwa einem Jahr noch haben einige der weltweit bekanntesten Investoren (SoftBank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commo...”
“Als auf E-Commerce fokussierter Anbieter von BNPL-Lösungen galt das Unternehmen neben einigen Branchen-Peers wie PayPal, Affirm oder AfterPa...”
“Vor etwa einem Jahr noch haben einige der weltweit bekanntesten Investoren (SoftBank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commo...”
“Vor etwa einem Jahr noch haben einige der weltweit bekanntesten Investoren (SoftBank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commo...”
“Als auf E-Commerce fokussierter Anbieter von BNPL-Lösungen galt das Unternehmen neben einigen Branchen-Peers wie PayPal, Affirm oder AfterPa...”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Stocard Founders Launch AI-Powered Shopping List App SuperPlan
The founders behind Stocard and SuperCards have launched SuperPlan, a free shopping list app for iPhone and Android. SuperPlan combines shared lists with recipe collections, using AI to import and process recipes from social media, cookbooks, and handwritten cards into ingredient lists. The app is ad-free and requires no account, with revenue from an optional Premium subscription (€1.99/week or €29.99/year in Austria) for advanced AI features, including voice input and photo recognition. The company, Super Apps Studio GmbH, is based in Berlin and Gmunden, Austria, and was founded by David Handlos, Florian Barth, and Mark Himmelsbach. Handlos previously co-founded Stocard, which was acquired by Klarna for approximately €110 million in 2021. SuperPlan faces competition from established apps like Bring!, AnyList, and Listonic, but aims to differentiate through superior AI recognition.
EU Inc: Lobbying Battle Between Startups, Notaries, and Unions
The EU Inc proposal, a new European legal form for startups, has sparked a major lobbying effort with over 300 meetings between interest groups and EU officials since end of 2024. Analysis of official data reveals that startups, notaries, and unions are the most active lobbyists. Startups, led by the German Startup Association, push for a fast, digital, and low-cost incorporation process. Notaries warn about fraud risks and want to maintain their role in identity checks. Unions fear the new form could undermine worker co-determination rights. The European Parliament's legal affairs committee is set to vote on the report on October 8, with trilogue negotiations planned for late autumn.
Deutsche Telekom Targets €2.5B AI Cost Savings by 2030
Deutsche Telekom announced at its AI Investor Day in Bonn plans to leverage AI to save approximately €2.5 billion in indirect annual costs by 2030, a significant increase from the €1.1 billion target for 2027. The company aims to grow AI-related enterprise revenue outside the US to €800 million by 2030, up from around €250 million this year. Key achievements include the 'Frag Magenta' (Magenta AI Assistant) handling 2.6 million calls in H1, reducing customer service calls by 55% at T-Mobile US, and the 'RAN Guardian Agent' cutting network response times to one minute. Telekom has trained over 100,000 employees on AI tools like AskT, ChatGPT Enterprise, and Microsoft Copilot, and founded Syntelligence with SoftBank to develop telecom AI solutions. CEO Tim Höttges highlighted AI's role in smarter networks and new business models, including 'sovereign AI' for enterprises and public institutions.
Track Real-Time Market Signals & Shifts
Set up custom watchlists to receive automated, evidence-grounded executive digests whenever material signals or shifts occur across your tracked landscape.