Equity It’s been a long time since we’ve seen such positive signals in fintech
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Nov 8, 2023 This discussion highlights the recent positive signals in the fintech sector, focusing on Klarna’s impressive recovery from a staggering valuation drop. Exciting partnerships, like Affirm's with Amazon, are evaluated alongside worries about rising consumer debt. The conversation underscores a cautious optimism as neobanks navigate challenges and continue to show profitability. Listeners are left intrigued by the shifting dynamics of buy now, pay later models and the potential resurgence of investment in fintech.
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Klarna's Valuation Drop
- Klarna's valuation dropped from $46 billion to $6.7 billion in July 2022.
- This represents one of the steepest valuation declines in startup history.
Klarna's Financial Turnaround
- Klarna's 2022 financials resembled a typical high-loss unicorn.
- However, Q4 2022 showed improvements, leading to the question of sustained improvement.
Klarna's Profitability
- Klarna swung to a profit in Q3, exceeding expectations after its down round.
- This achievement highlights the company's resilience and improved business model.