Paying Later
Klarna’s Earnings to Show How New Credit Firms Cope Under Stress
- Swedish fintech grew fast but lost money in recent quarters
- Klarna’s valuation was slashed to $6.7 billion in July
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Klarna Bank AB went through one of the most dramatic “down rounds” in history last month as some investors took fright at its costly global growth spurt. The Swedish fintech will reveal next week whether they’re right to worry.
The buy-now-pay-later giant, familiar to Gen Z and millennials as a way to spread the cost of online purchases, was Europe’s biggest startup with a value of $45.6 billion last year. It’s worth $6.7 billion today. Klarna and its 150 million-and-counting customers are facing budget pressures as the firm prepares to publish its half-year results.