Klarna made a loss last year of £87 million, down from a 12.8 million profit in 2018, despite revenues increasing by 31 per cent to £570 million, with 75,000 new merchants using its ‘buy-now-pay-later’ platform.

During 2019, the Swedish FinTech reported a doubling of users in the UK to more than seven million, and a sixfold increase in US users.

Klarna attributed its first loss since it was founded in 2005 to increasing investment in its Berlin engineering hub, as well as the 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,” read a statement.

The company raised $460 million in equity last August, with a valuation of $5.5 billion, making it the most valuable FinTech in Europe at the time.

Klarna currently has more than 5,000 live merchants in the UK, including brands such as River Island, ASOS, JD Sports, Gymshark, Made.com, Oliver Bonas, Boohoo Group, Missguided and Topshop.

The technology is now live across 17 markets, having most recently launched in Australia. Klarna employs over 2,700 people worldwide, 120 of whom are based in the UK spread across its two offices in London and Manchester.

Luke Griffiths, general manager at Klarna UK, said: “The UK statistics are reflective of our global growth story, as we continue to pursue our mission to make shopping simple, safe and smooth, for both consumers and retailers.”

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