Fintech Klarna's debt rises to record levels amid rate hikes

Swedish fintech startup Klarna Bank has seen a record rise in short-term borrowing costs as interest rates have hit the company's debt and equity valuations. it is reported by BLOOMBERG.

Klarna provides financial services on the Internet, such as payment in online stores through direct payments or using the BNPL service.

BNPL service (“Buy now pay later”, literally translated from English as “Buy now, pay later”) is an option that allows consumers to pay for online purchases in equal installments over a short period of time without concluding a loan agreement with a bank and additional fees.

Over the past few sessions, credit spreads on a number of Klarna floating rate debts have widened sharply. In the upcoming round, analysts expect to see the European fintech unicorn ’s valuation drop   by $16 billion. The company was valuated at $48 billion last June.

Earlier in May, the Swedish Privacy Protection Authority launched an investigation into Klarna Bank's teller service.

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