
Sebastian Siemiatkowski, Klarna CEO, made an effort to downplay the impact of the company’s drop in valuation. Siemiatkowski stated the current position is a “testament to the strength of Klarna’s business.”
Klarna is an e-commerce payment solutions platform for merchants and shoppers.
Klarna Bank AB, commonly referred to as Klarna, is a Swedish fintech company that provides online financial services such as payments for online storefronts and direct payments along with post-purchase payments.
The company has more than 4,000 employees, most of them working at the headquarters in Stockholm and Berlin. In 2021, the company handled about US$80 billion in online sales. As of 2011, about 40% of all e-commerce sales in Sweden went through Klarna. In 2021, the company was Europe’s most valuable private tech company, at a $45.6 billion valuation, however this crashed to $6.7 billion in 2022.
Klarna’s core service is to provide payment processing services for the e-commerce industry, managing store claims and customer payments. It has become known as a ‘Buy now, pay later’ (BNPL) service provider, offering customers credit on their purchases as part of the checkout process.
Sebastian Siemiatkowski, Klarna CEO, made an effort to downplay the impact of the company’s drop in valuation. Siemiatkowski stated the current position is a “testament to the strength of Klarna’s business.”
Not so long ago Klarna was planning to raise $1 billion, which would bring its valuation to a 30 billion range.
With the rising inflation and interest rate hikes causing the economic downturns, fintech firms are struggling to survive.