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Swedish payments provider Klarna’s net losses quadrupled in a bruising first half in which the valuation of Europe’s most valuable private technology plummeted.

The payments company reported a net loss of SEK 6.2 billion ($580 million) for the first half of 2022 on Wednesday, up from SEK 1.4 billion ($130 million) a year earlier. He attributed the worsening losses to higher personnel costs, investments in the integration of the newly acquired Swedish shopping comparison service PriceRunner and rising credit losses. He attributed the higher credit losses to difficulties in underwriting new customers with limited credit histories.

Revenue grew 24% year-on-year to SEK 9.1 billion ($950 million), driven by growth in markets such as the United States, where Klarna has amassed 30 million users, a fifth of its world total. It has also expanded to new countries, including Canada, the Czech Republic and Greece.

“Klarna operated in a very different environment in the first half of 2022,” said Sebastian Siemiatkowski, CEO and Co-Founder. “When we made our business plans for 2022 in the fall of last year, it was a very different world than the one we find ourselves in today.”

Klarna’s difficulties reflect challenges facing the broader buy now, pay later industry as falling consumer spending and increased regulatory scrutiny hit popular credit products, which allow consumers to defer or split payments into multiple instalments.

In July, after several attempts to raise capital at higher valuations failed, Klarna’s share value plummeted to $7 billion after raising $800 million from investors including Sequoia and Mubadala, the sovereign wealth fund of the United Arab Emirates.

Klarna secured a $46 billion valuation as recently as June last year, following a $639 million funding round led by Japan’s SoftBank, the investment group behind it. origin of a disastrous bet on the office sharing group WeWork.

The company cut its workforce by 10% in May as Siemiatkowski said it would focus on “short-term profitability”. Klarna has not been profitable since 2019.