Observed Signal · Jul 11, 2022 · Funding · Source: Trending Topics · Impact: 2/5 · Sentiment: Negative
Klarna's Downround: Valuation Plunges 85% to $6.7B
Swedish buy-now-pay-later provider Klarna announced a new funding round of €794 million ($800 million) at a valuation of $6.7 billion, an 85% drop from its $45.6 billion valuation in 2021. The company reported a net loss of roughly €240 million in Q1 2022 and about €668 million in 2021. Klarna also laid off 700 of its 7,000 employees. Investors including Sequoia, Silver Lake, Mubadala, and CPP Investments participated. CEO Sebastian Siemiatkowski defended the round as a sign of strength, while Sequoia chairman Michael Moritz attributed the valuation cut to shifting investor sentiment.
Major BNPL provider's valuation collapse signals a broader fintech downturn, with indirect implications for e-commerce and payment ecosystems.
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Key Takeaways & Evidence Grounding
- Klarna raised €794 million ($800 million) in a downround funding round.
- Klarna's valuation fell 85% from $45.6 billion (2021) to $6.7 billion.
- Klarna reported a Q1 2022 net loss of about €240 million; the 2021 net loss was about €668 million.
- Klarna laid off 700 employees, around 10% of its workforce.
- Investors in the round included Sequoia, Silver Lake, Commonwealth Bank of Australia, Mubadala Investment Company, and CPP Investments.
Connected Companies & Entities
9 Entities mapped“Klarna hat soeben eine Finanzierungsrunde von satten 794 Millionen Euro (800 Mio. Dollar) bekannt gegeben....”
“Michael Moritz, sowohl bei Lead-Investor Sequoia als auch bei Klarna Vorsitzender des Vorstands, hat da eine klare Meinung – nämlich die Inv...”
“investierten Sequoia, die Gründer selbst, Bestseller, Silver Lake, die Commonwealth Bank of Australia, die Mubadala Investment Company aus d...”
“investierten Sequoia, die Gründer selbst, Bestseller, Silver Lake, die Commonwealth Bank of Australia, die Mubadala Investment Company aus d...”
“Weder Stripe, noch PayPal, noch Block, noch Affirm würden in den Jahren 2018 bis 2022 ein derartiges Wachstum bei der Bewertung hingelegt ha...”
“Weder Stripe, noch PayPal, noch Block, noch Affirm würden in den Jahren 2018 bis 2022 ein derartiges Wachstum bei der Bewertung hingelegt ha...”
“Weder Stripe, noch PayPal, noch Block, noch Affirm würden in den Jahren 2018 bis 2022 ein derartiges Wachstum bei der Bewertung hingelegt ha...”
“Weder Stripe, noch PayPal, noch Block, noch Affirm würden in den Jahren 2018 bis 2022 ein derartiges Wachstum bei der Bewertung hingelegt ha...”
Ontology Mapping & Concepts
Related Market Signals & Shifts
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