Klarna, the Swedish buy-now-pay-later (BNPL) fintech, has seen a surge in customers due to rising interest rates and inflationary pressures.
Gross merchandise value or goods sold on its UK platform rose by 26% in the second quarter of 2023, with a 14% rise across Europe overall.
Loss-making up to this point, Klarna now claims 100 million European consumers and deals with over 470,000 merchants.
In a tough 2022, Klarna posted a loss of US$1 billion following a funding round in July that had seen its value plummet by 85% compared to a high-water mark at the start of the pandemic.
Sebastian Siemiatkowski, chief executive, said: “While other, smaller players dial back their commitment or leave the region altogether, we’re doubling down, further strengthening our position in Europe, as well as the US.”
“The company’s peers are down 80-90% vs peak valuations and consequently the adjustment in Klarna’s valuation is on par with its public peers from its $45.6bn valuation in June 2021,” the statement said.
Around 250 staff were recently laid off in Germany and Sweden, according to news website Sifted.