Klarna weighs new funding round

Klarna is exploring plans to raise more capital in a fundraising round that could value the company from $50 billion to $60 billion.

According to Bloomberg, the Swedish BNPL monolith, which is currently Europe’s most valuable start-up, is poised to attract fresh investment from sovereign wealth and pension funds.

According to the sources, it is also considering allowing existing backers to sell some of their interests as part of any fundraising, as well as separately investigating debt financing from banks to assist fund its expansion aspirations.

As interest rates climb around the world, concerns have been raised regarding the debt burden faced by BNPL enterprises. Klarna secured $639 million in June from SoftBank, Sequoia Capital, and Permira, valuing the company at $45.6 billion.

Klarna is thought to be a strong candidate for a public offering, which could happen later this year. Downing Street has lobbied the company to list on the London Stock Exchange rather than the New York Stock Exchange.