• Global PayTech companies raised a combined total of $2bn in Q3 2022 with Klarna, a buy now pay later (BNPL) platform, accounting for 39% of the funding with their latest $800m venture round. This is much higher than the average deal size in the sector of $21m in the third quarter.
• The United States dominated the PayTech sector and accounted for 43% of PayTech deals in Q3 2022. India was the second most active PayTech country with seven deals, a 7% share and France was third with 5 deals.
• Klarna once again starred as the largest FinTech deal in Q3 2022 raising $800m in its latest venture round that included ten investors in total with existing investors Sequoia and Silver Lake. The latest funding has dramatically changed Klarna’s valuation from $45.6bn to $6.7 bn, an 85% drop as higher interest rates, growing inflation and competition affect the company. Klarna are still the market leaders in the USA for BNPL services with 30m users. Klarna reported a pre-tax loss of nearly 6.2bn Swedish krona in the first half of 2022, up from 1.8 billion krona in the same period a year ago.
The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2022 FinTech Global