(Bloomberg) -- A shareholder in Klarna Bank has increased the value of its stake in the European firm by 18%, a small victory for the buy now, pay later platform that saw its valuation cut sevenfold last year.
Shareholder Creades AB, a listed Swedish investment company, increased the value of its stake to 118 million kronor ($11.3 million) as of Nov. 30, according to news agency Direkt.
The rise — which implies an overall $7.85 billion valuation for Klarna — comes after the fintech reported its first quarterly operating profit in four years as it attracted more consumers to buy-now-pay-later loans.
Last year, Klarna’s valuation was slashed to $6.7 billion from about $45.6 billion while it cut jobs, office space and other costs, as investors reconsidered the growth of easy credit at a time of rising interest rates.
Read More: Klarna Returns to Profitability as More Shoppers Borrow
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