Klarna has posted its first annual loss in its 15-year history despite revenues jumping by almost a third.
The Swedish ‘buy now, pay later’ giant saw its profits plummet from SEK161 million (£12.8 million) in 2018 to a loss of SEK1.1 billion (£87 million) last year.
This was despite seeing a 31 per cent rise in revenues throughout 2019 to SEK7.2 billion (£570 million) and adding 75,000 new merchants to its platform.
During 19 it also reportedly increased the number of users in the US sixfold, while doubling users in the UK.
It attributed its first loss since it was founded in 2005 to increasing investment into its engineering hub in Berlin alongside a huge push into the US market.
“The ongoing investment phase has and will further enhance the offering towards both merchants and consumers across markets, which provides a platform for driving sustained customer preference and growth in the next years,” it said.
In August a funding round led by Dragoneer Investment Group raised $460 million in equity for Klarna, leading to a post money valuation of $5.5 billion, up dramatically from $3.5 billion in April and $2.5 billion at the start of the year.
It has also partnered with a vast array of leading retailers in the UK over the past year, including Schuh, Asos, River Island, Samsung, H&M, Boohoo and Quiz.