$6.9m follower assets
Klarna posting its largest ever annual loss of $1bn
"The privately held Swedish fintech, whose valuation was slashed from $46bn to $6.7bn last year, reported an annual net loss of SKr10.4bn ($1bn), a 47 per cent increase over 2021." (FT)
"Growth was particularly strong in the US where its gross merchandise volumes — how much it processes for its retail customers — increased 71 per cent last year, making the country its biggest market by revenue in December despite competition from rivals such as Affirm and PayPal."
"The gross merchandise volume (GMV) of Klarna’s loans rose by 22%, to SEK242bn ($23bn), as shoppers flocked to the instalment payment method amid a cost of living squeeze. Klarna now has 150m consumers globally." (Sifted)
Source: Forbes
Source: Statista
The aggressive staff cuts and the 85 percent cut in its valuation have left Klarna humbled...
@joeyhirendernath Not different to what is happening at $AFRM. Having in mind also how much $SQ paid for Afterpay - $29bn ... tough pill to swallow in under more normal interest rate environment.
Wonder how much of that are losses from chargeoffs or unpaid loans, which has been biggest concern with these businesses. Thanks for sharing 🙏🏼
@ifb_podcast my concern exactly
@ifb_podcast Just about half of that (if you can generalize like this). Still their credit losses are close to par to the levels seen in 2021 at 68 basis points of total GMV.
Source: Klarna AR 2022
What happens to my loan through Klarna if they go belly up.. I got 35 months left! 😆
@jensen It should be written in the terms and conditions when the loan was made (the boring small print letters). Usually, if a loan provider goes under, any outstanding loans owed to that provider are classed as it's assets. The loans may be sold off by the appointed administrators, as one example. If the loans are sold off, lendees owe the money to the new lendor with the same terms.
@kostofff so…they’re not paying me instead for the headache inconvenience? I’d like to speak to a manager 
@jensen The house always wins ... 🙂
@kostofff as someone who works in sports betting I can confirm this to be truthful lol
I don't like the BNPL models, never did. I still own $SQ but without the BNPL would be better IMO.
@rihardjarc I think $SQ have significantly overpaid for that acquisition ...
@kostofff 100% agree. Thank god it was a stock deal and not cash one...
@rihardjarc Yes.
Does the Buy-Now-Pay-Later business model feel more unproven, or is it just in it's growth phase and investors have to be patient?
@nathanworden I think it's just another iteration of a lending type of business model which went too far under close to 0 interest rate environment. Eventually, we might end up with some (if not all) of these players being consolidated within some of the big banks.
@kostofff Makes sense. I don't see anything wrong with BNPL, it's just a different way of approaching credit that may be easier for some people to manage. Already, many credit card companies offer the ability to take specific purchases and pay them off in installments. Now that we're back in a normal interest rate environment, these businesses will need to charge for their services and it will be hard to compete against existing financial services institutions (banks, credit card companies, etc) that offer a variety of services beyond just BNPL.
@mvandergrift Exactly to the point.
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