Swedish company Klarna is in financial straits and it is unclear if the company will emerge victorious from them. According to reports, Klarna recently revealed its Q1 report and the financials were not up to par.
The Lowdown
The Street reports that the future for BNPL app Klarna may be bleak.  According to reports, Q1 financial reports for the company revealed that it is about $99m+ in debt thanks to customer losses and unpaid accounts.   For reference, BNPL stands for Buy Now Pay Later allowing people to buy things and pay later (but they’re obviously not paying later.)
The staggering losses are at least 50% higher than the same time last year for the company. Klarna suffered and is suffering for a host of reasons including its infamous decision to replace human workers with artificial intelligence. In the revelation Klarna itself named numerous issues including restructuring, depreciation, other issues as part of their ongoing problem.
Social media quickly lit up with claims that Klarna is shutting down however that does not appear to be the case.
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