Klarna’s fall is now at 16.2% #

Klarna Group’s valuation has fallen sharply, highlighting the challenges facing buy now, pay later (BNPL) providers as market conditions shift. Once valued at $45.6 billion during the fintech boom, Klarna is now valued at a fraction of that level following successive funding rounds and internal reassessments. The decline reflects higher interest rates, tighter investor scrutiny, and concerns about the sustainability of BNPL business models that rely heavily on consumer spending and low-cost capital.

The article notes that Klarna has taken significant steps to stabilize its operations, including cost-cutting, workforce reductions, and a stronger focus on profitability rather than rapid expansion. While the company has diversified into areas such as payments, advertising, and merchant services, competition in BNPL remains intense, and margins are under pressure as funding costs rise.

Klarna’s experience underscores a broader fintech reset, where growth-at-all-costs strategies are being replaced by demands for financial discipline, resilient unit economics, and clearer paths to profitability in a higher-rate environment.