Swedish fintech giant Klarna is reportedly looking for a new round of funding that will lower its valuation to about $ 30 billion, a significant reduction from the company’s previous public valuation of $ 45.6 billion, according to a report by The Wall Street Journal.

The company is the most valuable private fintech in Europe, but the proposed round will put the British companies Revolut and Checkout.com ahead of Klarna in the European fintech rating.

Revolut’s current estimate is $ 33 billion, while Checkout.com, after a $ 1 billion D-Series round in January this year, is valued at $ 40 billion.

The reported decline in Klarna’s assessment comes amid an increasingly uncertain economic climate in which investors are selling off technology stocks and is a sign that venture capital is becoming more cautious due to rising inflation and rising interest rates.

Potential regulatory repression may also contribute to the decision to reduce Klarna’s assessment.

The purchase company now pays later (BNPL) allows buyers to divide payments into installments to be paid after the initial purchase.

The UK government is seriously considering stepping up regulatory practices amid pressure from regulators and consumer groups.

Klarna recently announced that it will begin reporting BNPL purchases from customers in the UK to credit reporting agencies as a prelude to any potential new regulatory requirements to protect customers.

Founded in 2005, Klarna has raised billions from some of the biggest names in technology investment, including Silicon Valley venture capital giant Sequoia Capital and Japan’s SoftBank.

Klarna’s rating rose during the pandemic as the BNPL became an attractive payment option for consumers struggling with cash during the economic downturn.

Klarna currently dominates the BNPL market in the UK, but has had to face competition from rather established companies, including London-based Zilch, which recently expanded to the US.

That’s what a Clarna spokesman said UKTN that the report is “pure speculation and we do not comment on speculation.”

Klarna down round could crown a UK fintech Europe’s most valuable startup

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