Klarna is weighing plans to raise new money in a funding round that could potentially fetch a $50bn-$60bn valuation.
The Swedish BNPL monolith, which is already Europe’s most valuable start-up, is likely to attract sovereign wealth and pension funds as new investors, Bloomberg reports.
It is also considering whether to allow existing backers to sell some of their holdings as part of any fundraising as well as separately exploring raising debt financing from banks to help fund its expansion plans, according to the reports.
Concerns have been raised about the debt burden carried by BNPL firms as interest rates rise globally.
Klarna raised $639m in June from investors including SoftBank, Sequoia Capital and Permira, fetching a valuation of $45.6bn.
Klarna is viewed as a strong candidate for a public listing, which may come later this year. Downing Street has been lobbying the firm to list on the London Stock Exchange, rather than New York.