Klarna cuts losses in half, expects to turn around

Klarna is on track to return to profitability by the end of 2023, as its first-quarter results showed the fintech company’s losses had halved.

The Swedish buy-now-pay-later (BNPL) company announced that its first-quarter net loss narrowed to 1.3 billion kronor, while credit losses also fell by more than a third. Klarna’s revenue rose 13 percent to SEK 4.9 billion.

The company expects to return to profitability in August or September this year. “We are on track to be profitable this year,” Klarna CEO Sebastian Siemiatkowski commented.

In 2022, Klarna’s valuation plummeted from $46 billion to $6.7 billion amid fintech weakness, prompting a major restructuring of the company. In February 2023, Klarna reported a $1 billion loss for 2022. However, the fintech’s foray into the U.S. market marks an upward trajectory for the company.

BNPL recently launched an AI-powered personal shopping tool for its consumers and partnered with Airbnb to offer flexible payment options to guests in the US and Canada.

Source of information: Compiled from FINEXTRA by 0x Information.Copyright belongs to the author, without permission, may not be reproduced

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