Klarna lost $1Bn, but it's still hiring!
The last few years have been huge in the Buy-Now-Pay-Later sector. They saw Klarna rise to decacorn status and rival Adyen go public, reaching even Centacorn status in late 2021.
In recent times however, that lustre looks to have well and truly faded. Shmuel Chafets, CEO of VC Firm Targets Global, spoke damningly of BNPL at the recent London School of Economics Alternate Investments Conference, asking "is there fundamental value in this model for everyone involved?"
Klarna were thrust into the spotlight of BNPL criticism when they laid off 10% of their workforce and recent developments have not helped. The firm today revealed a $1bn loss for last year, even as its fourth quarter losses narrowed.
Despite this, Klarna is still hiring and paying. The FT reports that chief executive Sebastien Siemiatkowski received a 35% rise in remuneration for last year. Klarna has 150 positions currently, a third of which are for engineers.
Should you want to work there? Existing staff don't sound too enthused. Writing on Blind, one employee declared that he "wouldn't recommend Klarna unless you're unemployed. Pick any other option if you have." Someone else lamented the poor pay. However, another said Klarna as "a team and domain where everyone is really friendly and helpful. Also workload is awesome."
Klarna is a buy now pay later (BNPL) firm. Has that bubble burst? Perhaps not, if Adyen's efforts are anything to go by. Adyen is continuing its hiring efforts at the cost of its own stock. Other BNPL firms like Tranch have also been raising new funds.
Siemiatkowski insists the fintech is "making concrete progress towards profitability" and expects Klarna to be back in the black by Q3 this year.
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