Klarna’s Valuation Set to Slip, Bringing Fintech Star Down to Earth

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Klarna’s Valuation Set to Slip, Bringing Fintech Star Down to Earth
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Klarna's valuation—which one soared to $46 billion—has fallen with investors and could dip as low as $10 billion as the startup seeks fresh funding, according to people familiar with the company

Few private companies benefited more during the pandemic than Klarna Bank AB. Consumers, which lets shoppers break up payments for things they order online. Klarna’s valuation soared to $46 billion from $5.5 billion in just two years.

Times have changed. The loss-making startup has burned through a chunk of the money it raised in recent years and is now seeking fresh funds. Part of the reason it needs more capital is to keep up with more stringent Swedish bank capital requirements, according to people familiar with the company.

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