According to the Wall Street Journal, Klarna is nearing a capital round that would reduce the BNPL giant's valuation from $45.6 billion to roughly $6.5 billion. 

The Journal reports that Klarna is attempting to raise $650 million, most of which will come from Sequoia Capital, the company's largest investor. 

When the company was riding the buy now, pay later wave, its $639 million investment round in June of last year's valuation represented a significant discount. 

It was rumoured in February that it was considering a $60 billion valuation for a fundraising. 

A weakening economy and rising interest rates have prompted the company to record a $748 million operating deficit for the full year 2021 and to announce intentions to lay off 10% of its workforce. 

For the second time this year, Bloomberg reported that the company was looking to raise up to $1 billion in a deal that would put its post-money value in the low $30 billion area. 

Almost exactly one month later, the company appears to be OK with far less.