STOCKHOLM, Aug 31 Reuters Swedish payments company Klarna said on Wednesday its halfyearly operating loss more than tripled weighed down by an increase in employee costs, higher credit losses and continued investment in market expansion.

The operating result for the first half of the year was a loss of 6.17 billion Swedish crowns 578.52 million compared with 1.76 billion crowns in the yearearlier period.

Total credit losses rose to 2.85 billion crowns from 1.85 billion crowns a year earlier.

Known for its buy now, pay later BNPL services, Klarna grew fast during the pandemic but since the start of the year rampant inflation and the war in Ukraine had worsened business sentiment.

The Swedish company laid off about 10 of its workforce in May and last month raised 800 million of funds at a valuation of 6.7 billion, down around 85 from the 46 billion pricetag it attracted last year.

We have had a few years now where growth has been really heavily prioritised by investors, Chief Executive Sebastian Siemiatkowski said in a statement. Now, understandably, they want to see profitability.

Klarna said it has revisited its 2022 plans and will implement a number of prudent and preemptive measures to meet the evolving challenges.

The company39;s revenue grew 24 to 9.1 billion crowns and gross merchandise value GMV was up 21 to 396 billion.

However, total operating expenses before credit losses also rose to 10.81 billion crowns from 6.26 billion crowns.

Klarna, which has 150…