Turmoil in tech stocks appears to be spilling over to the fintech market, with reports that BNPL giant Klarna is looking to raisee fresh funds at a 30% discount to its previously sky-high $46 billion valuation.
The payments company could ask new and existing backers for as much as $1 billion in a deal that could put its post-money valuation in the low $30 billion range, sources told Bloomberg.
In February, Klarna reported soaring operating losses of $748 million for the full year 2021, driven by expansion to fresh markets and the challenges of underwriting a massive inflow of new customers. Losses for the year grew by 400%, compared to $150 million in the year prior.
The company was at the time reportedly weighing a funding round that would value it at up to $60 billion.
Some of Klarna's big backers have already re-appraised the net asset value of the stock to represent the new valuation.
The news has taken a shine off Klarna's celebration of having hit 150 million active consumers. The company currently processes two million transactions a day from a partner network of over 400,000 merchants.