Klarna Raises $800m as Investors ‘Opposite’ Votes Sink Valuation by 85%

Swedish fintech company Klarna confirmed on Monday that it would complete a $ 800 million funding round with a post-monetary valuation of $ 6.7 billion.

Companies that are popular for buying now will pay for the service later and this
statement “Klarna will end a major funding round during the worst stock price decline in 50 years.”

This rests reporting on the company’s efforts to raise funds to supplement its valuation.

However, with the new hike, Klarna’s post-money valuation fell -85% from its June 2021 hit of $ 45.6 billion, after raising $ 639 million.

Michael Mortis, a partner at Sequoia, an American venture capital firm, explains:

However, Moritz believes that investors will eventually emerge “from the bunker” and increase the share of Klarna and other top companies.

According to Clarna, whose net operating profit increased 38% to $ 1.6 billion in 2021, the $ 800 million round of funding is for payment and retail banking companies to expand their position in the United States.

Recently, Klarna launched a new business unit and sub-brand, Klarna Kosma, to accelerate the growth of open banking platforms.

Existing investors committed to new funding include Sequoia Capital, bestsellers, Silver Lake and the Federal Bank of Australia.

New entrants are the Mubadara Investment Company, a sovereign investor in the United Arab Emirates, and the Canadian Pension Plan Investment Board, a specialized investment management organization.

Contribution factors

Mr. Klarna said the investment will be made “in the worst of circumstances that have plagued the stock market since World War II.”

Sweden-based fintech companies have cited these disadvantages, including high inflation, rising interest rates, growing concerns about recession, and the spillover effect of the COVID-19 pandemic.

He added that the burden on commerce caused by supply chain disruptions, rising gas prices and the impact of the Russian-Ukraine war on Europe is also unfavorable.

Klarna explains:

“Klarna has not been affected by the significant decline in FinTech stocks in the public market.

“The company’s peers are down 80-90% from their peak valuations, resulting in Klarna’s valuation adjustments equivalent to public peers from the June 2021 $ 45.6 billion valuation. is.”

Sebastian Siemiatkowski, CEO of Klarna, believes that new funding is “a testament to the strength of Karna’s business,” despite the plunge in the global stock market for over 50 years.

Moritz points out that: “Klarna’s business, its position in various markets, its popularity with consumers and merchants are all stronger than any time since Sequoia’s first investment in 2010.”

Swedish fintech company Klarna confirmed on Monday that it would complete a $ 800 million funding round with a post-monetary valuation of $ 6.7 billion.

Companies that are popular for buying now will pay for the service later and this
statement “Klarna will end a major funding round during the worst stock price decline in 50 years.”

This rests reporting on the company’s efforts to raise funds to supplement its valuation.

However, with the new hike, Klarna’s post-money valuation fell -85% from its June 2021 hit of $ 45.6 billion, after raising $ 639 million.

Michael Mortis, a partner at Sequoia, an American venture capital firm, explains:

However, Moritz believes that investors will eventually emerge “from the bunker” and increase the share of Klarna and other top companies.

According to Clarna, whose net operating profit increased 38% to $ 1.6 billion in 2021, the $ 800 million round of funding is for payment and retail banking companies to expand their position in the United States.

Recently, Klarna launched a new business unit and sub-brand, Klarna Kosma, to accelerate the growth of open banking platforms.

Existing investors committed to new funding include Sequoia Capital, bestsellers, Silver Lake and the Federal Bank of Australia.

New entrants are the Mubadara Investment Company, a sovereign investor in the United Arab Emirates, and the Canadian Pension Plan Investment Board, a specialized investment management organization.

Contribution factors

Mr. Klarna said the investment will be made “in the worst of circumstances that have plagued the stock market since World War II.”

Sweden-based fintech companies have cited these disadvantages, including high inflation, rising interest rates, growing concerns about recession, and the spillover effect of the COVID-19 pandemic.

He added that the burden on commerce caused by supply chain disruptions, rising gas prices and the impact of the Russian-Ukraine war on Europe is also unfavorable.

Klarna explains:

“Klarna has not been affected by the significant decline in FinTech stocks in the public market.

“The company’s peers are down 80-90% from their peak valuations, resulting in Klarna’s valuation adjustments equivalent to public peers from the June 2021 $ 45.6 billion valuation. is.”

Sebastian Siemiatkowski, CEO of Klarna, believes that new funding is “a testament to the strength of Karna’s business,” despite the plunge in the global stock market for over 50 years.

Moritz points out that: “Klarna’s business, its position in various markets, its popularity with consumers and merchants are all stronger than any time since Sequoia’s first investment in 2010.”

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