Klarna’s valuation is set to slip by bringing the fintech star down to earth

Few private companies made more profit during this pandemic than Klarna Bank AB. consumers Keep flocking to the specialty lender, which lets buyers split the payment for what they order online. Klarna’s valuation grew from $5.5 billion to $46 billion in just two years.

Time has changed. The loss-making startup has burned through a portion of the money it has raised in recent years and is now looking for fresh funding. It needs more capital to meet the Swedish bank’s more stringent capital requirements, according to people familiar with the company.