Swedish fintech co Klarna raises $800 mn as valuation plunges 85% in a year

Klarna said its peers were down 80-90% from peak valuations and so its own decline since June 2021 was on par with them

Swedish payments firm Klarna Bank AB said on Monday it had raised $800 million of funds at a valuation of $6.7 billion, down around 85% from the $46 billion price-tag it attracted last year.

The tough stance taken by funders comes amid a drop-off in investor interest in fast-growing tech ventures that have yet to turn a profit and are burning through their cash reserves.

One of the beneficiaries of increased online shopping driven by the pandemic, Klarna, which provides "buy now, pay later" (BNPL) services, went on to become Europe's most valuable startup from a valuation of $5.5 billion in 2019.