CBACD Commonwealth Bank of Australia

By Dominic Chopping

STOCKHOLM--Klarna Bank AB said Monday that it has closed a new $800 million financing at a $6.7 billion valuation.

The Sweden-based specialty lending and online payments provider said the financing attracted strong support from both existing and new investors and will primarily be used to expand its market position in the U.S.

Investors led by an arm of SoftBank Group Corp. valued Klarna at $45.6 billion in June 2021, and Klarna said Monday that since then the company hasn't been immune to the "significant downdrafts" of fintech stock in public markets.

However, it said that it received strong backing from existing investors, including Sequoia, the founders, Bestseller, Silver Lake, and Commonwealth Bank of Australia, while investors such as UAE sovereign fund Mubadala Investment Co. and CPP Investment Board made their first investments in Klarna.

"Eventually, after investors emerge from their bunkers, the stocks of Klarna and other first-rate companies will receive the attention they deserve," said Michael Moritz, partner at Sequoia.

Klarna said it now aspires to allow all of its more than 1,000 smaller shareholders to participate on a pro-rata basis in a process that will continue for the coming few weeks.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 11, 2022 08:51 ET (12:51 GMT)

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