Klarna To Raise Fresh Cash at Slashed $6.5 Billion Valuation

Klarna Bank is nearing a deal to raise new money at a valuation of around $6.5 billion, WSJ reported Friday, citing people familiar with the matter, a humbling comedown and a testament to the punishing environment facing startup companies. From a report: The Sweden-based specialty lending and online payments provider is negotiating to raise about $650 million mostly from existing investors led by Sequoia Capital, the people said. Michael Moritz, who is the chairman of the well-known venture-capital firm, serves in the same role at Klarna. The deal has yet to be completed and could still hit last minute snags, the people said. But if completed, it would represent a huge discount on the company's valuation when investors led by an arm of SoftBank Group valued Klarna at $45.6 billion in June 2021.

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