Buy now, pay later firm Klarna sees value cut to €6.6bn from €45.7bn 

To rein in costs, Klarna made about 10% of its workforce redundant in May, saying rampant inflation and the war in Ukraine had worsened business sentiment

Klarna went on to become Europe's most valuable startup from a valuation of $5.5bn (€5.47bn) in 2019. Picture: Hollie Adams/Bloomberg.

Swedish payments firm Klarna Bank AB said on Monday it had raised $800m (€795m) of funds at a valuation of $6.7bn (€6.6bn), down around 85% from the $46bn (€45.7bn) price-tag it attracted last year.

The tough stance taken by funders comes amid a drop-off in investor interest in fast-growing tech ventures that have yet to turn a profit and are burning through their cash reserves.