Shopping loans provider Klarna Bank eyes shares sale after returning to profit

The firm averted a strike by some of its staff after signing a collective bargaining agreement with the Financial Sector Union of Sweden late last week

Klarna, once Europe’s most valuable start-up, offers credit to about 150 million shoppers globally looking to spread the cost of online purchases.

Klarna Bank has reported its first quarterly operating profit in four years as it attracted more consumers to buy-now-pay-later loans, giving the firm a boost as it lays the groundwork for an initial public offering of its shares.

The Stockholm-based fintech reported an operating profit of 130 million Swedish krona (€11.1m) for the three months through September, while revenue rose by about 30% to six billion krona. It’s the firm’s first profitable result since the second quarter of 2019.