3 reasons why Klarna’s valuation has fallen by 69% from its peak just a few years ago

In 2021, the Swedish giant BNPL was rising in collecting subsequent donations, and became the first startup champion in Europe, and then came behind the strip between Fintechs worldwide. However, the public subscription represents 14 billion dollars in the arch of a company that can easily be an other warning tale-where the evaluation decreased by up to 85 %, to 6.7 billion dollars by 2022. Clarena has cleaned his financial resources, diversified in consumer advertisements and features, and now it appears like a disciplined Fintech platform.

The company, with support from investors including Sequoia Capital and Silver Lake, has applied for an American initial public offer that could come by the end of the year. It will be among the largest lists of the European Technology Company in recent years. At its peak in 2021, Clarna’s value was higher than some European banks. However, the high interest rates, the more strict regulation of BNPL services, the investor’s doubts about the unbalanced growth, Clarna reduced the operating costs, the reduction of employees, and the request for capital with fewer evaluations gradually.

In the last quarters, Clarna reported progress. The losses narrowed, and the administration has turned its focus from expanding to growth and measured profitability. Analysts say that the large merchant network and consumer adoption remain competitive advantages, although the questions are still standing about the durability of the payment model in a high environment. In her organizational deposit, Clarena said she was profitable for 14 years before expanding in the United States and other markets, and has not recorded annual profit since 2018. In 2023, our operating loss began to decline and we started generating dollars in a positive treatment in the United States, “said the company in its organizational file. Why did Klarna collapsed after its profits – and why did it go towards the apparent recovery of public markets?

1) End of low interest rates

Technical assessments have generally suffered since 2022, when the Federal Reserve has wandered interest rates strongly to combat increased inflation. Many of the excessive business models that depend on ease of credit – between them – have become more expensive. The volatility of the wider macroeconomic economy was weighed on many companies that resemble Clarna, as geopolitical disorders and uncertainty in the trade policy have been collected to set a maximum investment.

The S& P 500 is unusually concentrated, sometimes led by “Seven Magnificent”, and recently the wonderful six without Tesla. NVIDIA has recorded a roof of the 4 trillion dollars market and can now move the markets by virtue of tremors. Sometimes, the S&P 500 is similar to the S&P 10.

2) Consumer slowing

The American consumer is the American economy engine, responsible for two -thirds of GDP in most years. However, something funny happened in 2025, as the huge increase in building the data center associated with the artificial intelligence revolution contributed to the growth of GDP more than exit from consumers and shopping. This does not mean that building the data center is two -thirds of the gross domestic product, but it grows faster than the normal consumer, which shows signs of fatigue in the stagnant labor market and the increased inflation background.

Apollo Global Torsten Slok, chief economist at Apollo Global Torsten Slok that inflation may resume ascending ascending from the increase in 2021, which benefited from the highest evaluation in Clarna, where it witnessed a possible “mountain of inflation” that is looming on the horizon. On the other hand, consumers who are linked to criticism may turn into BNPL services, where Lindingtree has found 14 % of adults who used services to buy groceries in 2024 developing to 25 % next year. Consumers may slow down, but high inflation and even recession can push them more to the purchases of financing with the help of BNPL services.

3) Organizational audit

Clarna was scrutinized by the Consumer Financial Protection Office (CFPB) during the Biden administration, which definitely prefers a stronger organization than CFPB under any Trump system. Some members of the Senate and state lawyers CFPB urged a stronger supervisory hand with BNPL companies, expressing fears that low -income weak consumers were at risk of targeting.

The industry resisted, with a commercial group that included KLARNA prosecution CFPB at one point on the “impossible” detection rules. As of 2025, CFPB has canceled the implementation of federal enforcement in BNPL, indicating a shift towards fragmented control, with expectations of more state -led regulatory measures.

Can Unicorn ride again?

Over the past two years, the company has been rebuilt with a focus on reducing losses, expanding to neighboring companies such as advertising, and working on profitability. The public subscription is expected to test the investor’s appetite for technology, which was once advancing in amazing assessments, but is now facing more traditional market auditing on margins and profits.

The list, expected in New York later this year, will remain one of the most important European technical subscriptions in the contract. Investors will closely monitor to see if the new chapter of Klarna proves that it can outperform the BNPL-or whether the two-saving fogy two wills once to restore their brilliance in the private market.

For this story, luck The artificial intelligence is used to help with a preliminary draft. Check an editor of the accuracy of the information before publishing.

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