Klarna May Get Backing From Canada Pension Fund, Sky Reports

(Bloomberg) -- The Swedish buy-now, pay-later giant Klarna Bank AB has secured funding from investors that could include the Canada Pension Plan Investment Board, Sky News said.

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Klarna is close to announcing a $800 million funding round at a valuation of less than $6 billion, according to the report. It’s been in talks with CPPIB, the largest Canadian pension fund, as well as the Abu Dhabi state investment fund Mubadala, Sky said.

The reported valuation marks a sharp drop from the $15 billion that was under negotiation last month and a fraction of the $45.6 billion Klarna commanded last summer that made it Europe’s most valuable startup. Bloomberg News reported earlier this month on the talks with investors.

Existing shareholders Sequoia Capital and Silver Lake are planning to participate in the latest fundraising round, Sky reported. A Klarna spokeswoman declined to comment to the news outlet.

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