Buy now, pay later behemoth Klarna has revealed soaring losses for the second quarter as provisions for potential bad debts escalated.

The Swedish fintech unicorn recorded a 64% leap in provisions to $174m (£128m), rising from $106m for the equivalent period in 2024, as reported by City AM .

This helped counterbalance revenue expansion of 20% to $824m, pushing losses for the three months ending June to $53m. This represented an increase from an $18m post-tax deficit for the second quarter of 2024 and follows net losses reaching $99m in the opening quarter of the year.

However, Klarna stated that credit losses for the period declined to 0.56% of gross merchandise volume (GMV) – which represents the total sales value of everything sold on a platform before any fees or costs are deducted

See Full Page