Few private companies benefited more during the pandemic than Klarna Bank AB. Consumers flocked to the specialty lender, which lets shoppers break up payments for things they order online. Klarna’s valuation soared to $46 billion from $5.5 billion in just two years.
Times have changed. The loss-making startup has burned through a chunk of the money it raised in recent years and is now seeking fresh funds. Part of the reason it needs more capital is to keep up with more stringent Swedish bank capital requirements, according to people familiar with the company.
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