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Klarna lettering on a mobile phone
Photo: Dado Ruvic / REUTERS
The Swedish payment service Klarna is also feeling the effects of the declining interest of investors in fast-growing and loss-making fintech companies.
The company announced in Stockholm on Monday that it had secured $800 million in new financing, valuing it at $6.7 billion.
However, the company has lost around 85 percent of its value in one year.
A year ago, the online installment provider was valued at $46 billion.
Klarna was founded in 2005.
The company's sales recently amounted to around 11 billion Swedish crowns, the equivalent of 1.6 billion euros.
layoffs in May
In the midst of a broad-based sell-off on the stock exchanges, the valuations of fintech start-ups have also collapsed, some of them massively.
BNPL rival Affirm Holdings has lost more than 80 percent of its market value this year alone.
In May, Klarna announced that it would lay off one in ten of its 7,000 employees.
The hard cut was justified with inflation.
Volatile stock markets and the prospect of a likely recession also contributed to the decision.
The job cuts affect all parts of the company, Klarna had explained.
"Klarna's rating is solely due to the fact that investors suddenly vote differently than in recent years," said Michael Moritz, partner at the venture capital company Sequoia.
Sequoia, the company's founders, Bestseller, Silver Lake and the Commonwealth Bank of Australia participated in the latest round of funding.
Similar to Klarna, many start-ups are struggling with the fact that the financing conditions for them are drastically worsening in the current crisis.
beb/Reuters
