Few private companies have benefited more from the pandemic than Klarna Bank AB. Consumers have flocked to the specialty lender, which allows shoppers to split payments for things they order online. Klarna’s valuation has gone from $5.5 billion to $46 billion in just two years.
The times have changed. The loss-making startup has burned through some of the money it has raised in recent years and is now seeking new funding. According to people familiar with the company, part of the reason it needs more capital is to keep up with Swedish banks’ stricter capital requirements.