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Buy now, pay later firm Klarna Bank AB is close to a deal to raise cash at a valuation of approximately $6.5 billion, according to a Wall Street Journal article Friday.
The new valuation is 86% lower than the company’s previous valuation, demonstrating the current challenging environment startups currently face. If the deal goes through, it will represent an enormous discount.
The WSJ, citing sources familiar with the matter, states the Sweden-based lending and online payments provider is speaking with investors to raise roughly $650 million.
The money is said to mostly come from existing investors led by Sequoia Capital. Chairman of Sequoia Capital, Michael Moritz, also conducts the same role at Klarna.
The report cautions that a deal is yet to be completed and could run into last-minute headwinds.
