Observed Signal · Jun 17, 2022 · Funding · Source: Trending Topics · Impact: 3/5 · Sentiment: Negative
Klarna Valuation Set to Plummet from $46B to $15B
According to a Wall Street Journal report, Swedish buy-now-pay-later provider Klarna is preparing a new funding round at a valuation of around $15 billion, down sharply from the $45.6 billion valuation investors assigned in 2021. The reported down round reflects deteriorating market conditions and growing losses: Klarna's first-quarter loss widened to $250 million, four times the previous year. CEO Sebastian Siemiatkowski also announced around 700 job cuts out of 7,000 employees, citing inflation, volatile stock markets, and a likely recession. IPO plans are reportedly off the table. The news adds to pressure across the BNPL sector, with shares of Affirm, PayPal, Block, and Zip having fallen over the past year. Klarna had previously sought new investment at a valuation of roughly $30 billion.
The reported two-thirds valuation cut for a leading BNPL provider signals a major correction in e-commerce and fintech markets, with knock-on effects for merchant advertising budgets and payment-driven marketing ecosystems.
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Key Takeaways & Evidence Grounding
- Klarna is reportedly seeking fresh funding at a valuation of about $15 billion, according to the Wall Street Journal.
- Klarna's valuation reached $45.6 billion in a 2021 funding round of €525 million ($639 million).
- Klarna's Q1 loss widened to $250 million, four times the year-ago figure.
- CEO Sebastian Siemiatkowski told staff that about 700 of 7,000 employees would be laid off.
- Shares of Affirm, PayPal, Block, and Zip fell sharply over the past year amid a broader BNPL downturn.
Connected Companies & Entities
14 Entities mapped“Der BNPL-Riese Klarna, der 2020 und 2021 einen spektakulären Aufstieg hinlegte, muss Federn lassen....”
“zeigt jetzt ein neuer Bericht des Wall Street Journal...”
“Softbank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Ant Group, Northzone, GIC (Singapurs Staatsfonds)...”
“Softbank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Ant Group, Northzone, GIC (Singapurs Staatsfonds)...”
“Softbank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Ant Group, Northzone, GIC (Singapurs Staatsfonds)...”
“Softbank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Ant Group, Northzone, GIC (Singapurs Staatsfonds)...”
“Softbank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Ant Group, Northzone, GIC (Singapurs Staatsfonds)...”
“So haben die Aktienkurse von Affirm, PayPal, Block (Square mit der Tochter Afterpay) oder Zip im Verlauf des letzten Jahres stark gelitten...”
“So haben die Aktienkurse von Affirm, PayPal, Block (Square mit der Tochter Afterpay) oder Zip im Verlauf des letzten Jahres stark gelitten...”
“So haben die Aktienkurse von Affirm, PayPal, Block (Square mit der Tochter Afterpay) oder Zip im Verlauf des letzten Jahres stark gelitten...”
“So haben die Aktienkurse von Affirm, PayPal, Block (Square mit der Tochter Afterpay) oder Zip im Verlauf des letzten Jahres stark gelitten...”
“Softbank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Ant Group, Northzone, GIC (Singapurs Staatsfonds)...”
“Softbank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Ant Group, Northzone, GIC (Singapurs Staatsfonds)...”
“Softbank, Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Ant Group, Northzone, GIC (Singapurs Staatsfonds)...”
Ontology Mapping & Concepts
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