Klarna investors ask for funding commitment as value drops to $10 billion | Business newsletter

Klarna, a buy-now-pay-later credit provider, is trying to close a new round of funding that could potentially value it at less than $10 billion – just 20% of its value just two years ago. .

Sky News has learned that the Swedish company has asked investors to commit in the coming days to a fundraising that is expected to end within weeks, as early-stage companies rush to tabulate balance sheet before a bad economic period.

Banking sources said on Friday that Klarna has yet to finalize a new valuation and warned that it is likely to settle below the $10 billion mark, although it could still be slightly higher than that. that level.

It is understood to be planning to raise around $600 million, though that figure could also change.

Existing Klarna backers including Sequoia Capital and Silver Lake are reportedly planning to participate in the latest round of funding for a company that has grown at breakneck speed in recent years to become a one of Europe’s most valuable technology companies.

Its other shareholders include SoftBank’s Vision Fund.

Two years ago it raised funds at a $45.6 billion valuation, while in the past six weeks alone, the Wall Street Journal has reported that the company is seeking funding at a $30 billion valuation, then $15 billion and then as low as $10 billion. .

Its lackluster valuation ambitions are partly the result of changing economic circumstances, with investors increasingly moving away from tech-focused growth companies, in part increasing regulatory scrutiny. and partly the emergence of giants like Apple in the field of buy now, pay later.

“We do not comment on fundraising nor valuation speculation,” a Klarna spokesman said.

Silver Lake declined to comment.