LONDON — Swedish fintech start-up Klarna saw its losses balloon in the first nine months of 2021, as costs increased sharply amid rising demand for buy now, pay later services.
The Stockholm-based firm posted a pre-tax loss of 3.1 billion Swedish krona ($344 million) from January to September, a fourfold increase from the 800 million krona it lost in the same period a year ago.
Klarna, which was last privately valued at $46 billion, reported net operating income of 9.8 billion krona, up 40% from last year.
The vast bulk of the losses came from general administrative expenses, which amounted to 9.5 billion krona, up from 5.9 billion krona last year.
Credit losses also rose considerably, totaling 2.9 billion krona year-to-date, higher than the 1.6 billion krona reported for the same period last year.