Klarna, the Swedish payments company that was Europe's most valuable private fintech firm until Checkout.com overtook it late last year (though it will soon again take that crown from what we've heard), this morning reported its annual financial results.
The 'buy now, pay later' company reported a 40% increase in net operating income in 2020, helped by its expansion in the US and a couple of other markets, breaking the $1 billion income threshold for the first time.
Klarna says it now has 18 million people using its app on a monthly basis, with 87 million having used its service to 'shop, pay and bank' in 2020.
The company’s gross merchandise volume - the total value of transactions made using its payment platform - rose 46% to $56 billion for the full year.
Klarna’s net loss, however, widened to 1.38 billion Swedish crowns (about $167 million) from 902 million crowns a year earlier.
Sebastian Siemiatkoski, Klarna co-founder and CEO, said: "The last year has created unprecedented change in the global economy which has transformed how consumers bank, shop and pay. Klarna has adapted well, supporting retailers to move online at pace while continuing to provide consumers with superior shopping experiences and payment options that meet their evolving needs. 2020 has not slowed Klarna’s progress: we scaled to four new markets, broadened our platform to an integrated banking offering in Sweden and Germany, and truly accelerated our growth in the US, where we added 1 million new consumers per month in the last quarter."
Klarna is said to be raising funds valuing it at around $31 billion, roughly tripling the company’s valuation after its most recent $650 million round in September. Siemiatkowski recently hinted to Reuters that, if the decision to float the company is made, it will likely be a direct listing rather than a 'traditional' IPO.