Klarna loss halves as Swedish fintech schemers gain again

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Klarna halved its first-quarter losses as Swedish buy now, pay later pioneer said it was on track to return to profit by the end of the year.

Once the most valuable private technology company in Europe, Clarna it said on Friday that its net loss narrowed to SEK 1.3 billion ($120 million) in the quarter as the group’s credit losses narrowed by more than a third. Its revenues increased by 13% to SEK 4.9 billion.

Klarna has become a symbol of boom and bust in the fintech industry as its valuation was reduced from $46 billion to $6.7 billion last year, prompting the group to downsize and cut jobs.

Founded in 2005, the company pioneered the “buy now, pay later” principle, which allows customers to delay payments or split them into installments. The popular form of credit has been boosted by the e-commerce boom during the coronavirus pandemic.

Chief executive Sebastian Siemiatkowski said late last year that he expected Klarna to be profitable again by August or September.