Buy-now-pay-later giant in talks for new funding round

With a valuation of around $6 billion, a small portion of the $45.6 billion it held last summer when it became the most valuable startup in Europe, Klarna Bank AB is in talks to raise fresh funding.

Company valuation may change

According to some experts, discussions over Klarna’s valuation are still in flux, and its new funding level may even be close to $10 billion.

The Swedish lender boasts 400,000 retail partners, including Nike Inc., IKEA, Sephora, and Expedia Group Inc., and more than 147 million active users globally.

As a result of pressure on its business model from a combination of inflation, rising rates, and an impending recession, Klarna’s new valuation occurs concurrently with a downturn in the stock market.