Klarna Cuts Its Losses In Half And Hopes To Turn A Profit Again

Klarna is on track to start making money again by the end of 2023. The fintech company’s first quarter numbers show that it has cut its losses in half.

The Swedish Buy Now, Pay Later (BNPL) company said that its net losses in the first quarter went down to SKr1.3 billion and that its credit losses also went down by more than a third. Klarna’s sales went up by 13%, to SKr4.9 billion.

The company hopes to start making money again in August or September of this year. Chief executive at Klarna, Sebastian Siemiatkowski commented:

“We are on track to achieve profitability this year.”

During the fintech slowdown of 2022, Klarna’s value dropped from $46 billion to $6.7 billion. This led to a big company restructure. Klarna said in February 2023 that it had lost $1 billion in 2022. But the fintech’s move into the US market was a step in the right direction for the business.

The BNPL company just released an AI-powered shopping tool for its customers and teamed up with Airbnb to give guests in the US and Canada more payment choices.