Klarna announced that it held a round of valuation of $6.7B, which is lower than the previous $45.6B.
We first invested in Klarna in December 2020. What is our strategy now?
We believe that Klarna's valuation will recover, and the best strategy is to keep the paper in the portfolio. Moreover, we are considering increasing our stake in the company through cheaper shares.
Why do we think the Klarna score will recover?
The company has excellent business metrics and an effective market strategy. Until 2019, it was profitable, which is rare for a fintech startup. Since 2019, Klarna has invested heavily in growth by entering new markets, pursuing acquisitions, and launching new products.
Klarna now has over 150M active users and 400,000 retail partners in 45 countries.
The $800M mega-round in challenging market conditions shows investors continue to believe in the company.
The raised funding will help the company "survive the hard times" and maintain market leadership, increasing its valuation.
