Klarna reportedly elevating $650M at a $6.5B valuation.

In an indication of the instances, Swedish purchase now, pay later big Klarna is reportedly near inking a brand new spherical of funding that might slash its valuation to $6.5 billion — about 1/7 of what the company was valued in June of 2021.

The Wall Avenue Journal reported right now, citing nameless sources, that Klarna was “negotiating to boost about $650 million largely from current traders led by Sequoia Capital.” Sequoia chairman Michael Moritz can be chairman of the embattled funds big.

The deal continues to be within the works, reported the Journal. But when accomplished, it can symbolize a giant fall from grace for Klarna, which was using excessive final yr when it raised $639 million in a spherical led by SoftBank’s Imaginative and prescient Fund 2 at a $45.6 billion valuation.

Klarna has been making a giant push into the USA, competing with the likes of publicly traded Affirm. In early June, Klarna stated that over the previous yr, its “U.S. buyer base has grown by over 65%, reaching over 25 million shoppers.” The entire BNPL (purchase now, pay later) section has taken successful as of late, however nonetheless, the massive drop in valuation for Klarna offers new which means to the phrase “down spherical.”

TechCrunch has reached out to Klarna for remark.

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