News Digest:

Several high-profile privately held fintech start-ups have recently suffered a massive decline in valuations amid growing concerns over the viability of their business models, against a backdrop of growing inflation, rising interest rates and economic slowdown.

Takeaway:

Swedish fintech Klarna revealed a couple of weeks ago that it had closed a “down round” worth $800m in fresh financing, at a $6.7bn valuation – down 85% from the $45.6bn value it secured during a 2021 cash infusion.

Meanwhile, shares of PayPal, Affirm and Block, Square’s parent company, have plunged by 64%, 77% and 61%, respectively, since the start of this year, signalling rising investor concerns over high-growth tech stocks and “buy now, pay later” lenders.

End Notes

Source: https://www.cnbc.com/2022/07/11/klarna-valuation-plunges-85percent-as-buy-now-pay-later-hype-fades.html