After the hype years of 2020 and 2021, BNPL provider Klarna is struggling badly. After the massive down-round and mass layoffs, the Swedish unicorn has to report today a pretty tough first half of 2022. As a result, the operating loss has tripled compared to last year’s period.
This tripling means that Klarna’s losses have widened from 168 million in H1 2021 to a whopping 580 million dollars in H1 2022. However, it’s also worth noting that revenue grew decently – that is when inflation in Europe and the U.S. grew steadily. Sales were $950 million, 24% higher than last year’s. This growth has come primarily from the U.S., and the UK. 30 of the 150 million users worldwide are from the U.S.
Klarna has plummeted 85% from Europe’s most valuable tech unicorn, from a valuation at about $45 billion to just $6.7 billion. But the company also raised a whopping 794 million euros ($800 million) in its financing round. It can now use this to offset the (surely anticipated) losses.