Klarna Bank AB is seeking to raise new money that could value the fintech giant at nearly a third less than the roughly $46 billion valuation it achieved just under a year ago , according to people familiar with the matter, an example of the struggles the technology faces. investment world.

Klarna specializes in buy-it-now and pay-later services, a popular type of cash advance that competes with credit cards and allows customers to pay for goods and services in installments without paying interest. Klarna makes money by charging fees to merchants who offer Klarna’s services.

Klarna became Europe’s most valuable fintech startup in June when SoftBank Group Corp.’s Vision Fund 2. led an investment in the company that valued it at $45.6 billion.

The Sweden-based payments company is aiming to raise up to $1 billion from new and existing investors in a deal that could value it in the low $30 billion range after the injection of l money, the people said. This would represent a drop of around 30% from the previous round.

Earlier this year, Klarna spoke with investors about a valuation of more than $50 billion, but some backed down amid market jitters, one of the people said.

An expanded version of this story appears on WSJ.com.

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