Fighting words from Stockholm-based buy-now, pay-later scale-up Klarna as it announces a $800 million round at a $6.7 billion post-money valuation, significantly lower than the last time it raised cash ($45 billion+).
The headline of the fintech company's press release only has one number in it: 50, the amount of years the stock market has been in a better place than today.
This is reiterated by CEO Sebastian Siemiatkowski in a statement:
“It’s a testament to the strength of Klarna’s business that, during the steepest drop in global stock markets in over fifty years, investors recognized our strong position and continued progress in revolutionizing the retail banking industry. Now more than ever businesses need a strong consumer base, a superior product, and a sustainable business model.”
The quote from investor and Sequioa partner Michael Moritz offers a more interesting read:
"The shift in Klarna’s valuation is entirely due to investors suddenly voting in the opposite manner to the way they voted for the past few years. The irony is that Klarna’s business, its position in various markets and its popularity with consumers and merchants are all stronger than at any time since Sequoia first invested in 2010. Eventually, after investors emerge from their bunkers, the stocks of Klarna and other first-rate companies will receive the attention they deserve”.
Anyhoo, Klarna says the fresh cash will be used primarily to solidify its market position in the US.
Investors in the round include Sequoia, Klarna's founders, Bestseller, Silver Lake, and Commonwealth Bank of Australia. Mubadala and the Canada Pension Plan Investment Board (CPPI) have come in as new investors.
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