Swedish Payment Solution Provider karnas On Monday it said it had raised $800 million in new financing, but its market valuation has fallen 85% from a year ago’s price tag of $46 billion.

Klarna said the latest round of funding is valued at $6.7 billion, down 85% from a year ago, as investor interest continues to grow rapidly. Technique Enterprises that have not yet turned a profit have declined dramatically.

The Swedish conglomerate said the market sell-off was widespread and that Klarna’s peers had also seen their valuations drop 80 to 90%.

“Kerna has not been immune to significant downdrafts fintech stocks in the public markets,” it said.

The $800 million raised in fresh funding will be “used primarily to expand Klarna’s leading market position in the United States,” it said.

Klarna called “the worst set of circumstances to afflict the stock markets since World War II”, including high inflation, rising interest rates, the lingering effects of the pandemic, supply chain disruptions and “dislocations caused by the war in Ukraine”. Pointing to the blame for its declining valuation. ,

The company had already seen deteriorating economic conditions affecting its business, and in late May, Klarna announced it was cutting about 10% of its 7,000-strong workforce.

Launched in 2005, Klarna has established itself as one of Sweden’s most successful startupProviding online payment solutions to businesses and easy payment options to consumers.

According to Klarna, it has 147 million active users across more than 400,000 merchants in 45 countries.

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