Latest news with #RyanLawler
Axios
20-03-2025
- Business
- Axios
Buy now, pay later for ... your burger
DoorDash announced Thursday it's adding Klarna's buy-now-pay-later payment options into the delivery app. Why it matters: Enjoying a sandwich today and paying for it some other time just got a lot easier, exactly the kind of decision BNPL watchdogs fear can saddle consumers with " phantom debt." Zoom in: Klarna will provide multiple payment options in DoorDash, including: Pay immediately. "Pay in 4," which allows customers to pay in four equal interest-free installments. "Pay Later," which allows them to defer payments until what Klarna calls "a more convenient time." State of play: DoorDash rival GrubHub was already offering Klarna payment services. But DoorDash is the market leader in restaurant delivery services, commanding nearly 63% of the market, according to Earnest Analytics, making its move into BNPL a seismic moment for the payment option. In addition to food, DoorDash also offers delivery from a wide variety of other retailers. What they're saying: "By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we're making convenience even more accessible for millions of Americans," Klarna chief commercial officer David Sykes said in a statement. A Klarna spokesperson did not respond to questions about how the company will protect users from taking on too much debt for impulse purchases via DoorDash. The intrigue: The announcement comes as Klarna is barreling toward an IPO in pursuit of a $15 billion valuation. The company says it has 93 million active consumers and works with over 675,000 merchants in 26 countries. 💭 Our thought bubble via Axios Pro: Fintech Deals co-author Ryan Lawler: This deal is less about adding a buy-now-pay-later offering to DoorDash customers, and more about Klarna pitching itself as the default payment platform for everyday spending categories.
Axios
14-03-2025
- Business
- Axios
Fintech giant Klarna files for U.S. IPO
Klarna, the Swedish buy now, pay later giant, on Friday filed for a U.S. IPO. Why it matters: It's the first big consumer fintech to test the markets since Ibotta last April, and reportedly will seek a $15 billion valuation. By the numbers: Klarna, which plans to trade under KLAR on the NYSE, reported a $21 million net profit on $2.8 billion in revenue for 2024, compared to a net loss of $244 million on $2.3 billion in revenue the year prior. It claims to have 93 million active consumers and to work with over 675,000 merchants in 26 countries. Klarna's valuation has oscillated wildly, reaching a peak of $45.6 billion in 2021 before plunging to $6.7 billion a year later. Shareholder Chrysalis Investments revalued the company at $14.6 billion last year. Klarna is the largest BNPL provider in the world and is rapidly expanding to offer other financial products to its customers. Context: Observers had feared it would be shelved in light of recent market volatility. Follow the money: Investors include Sequoia Capital, SoftBank, Silver Lake, Dragoneer, Ant Group, Visa, Atomica, Nortzone, GIC, TCV, BlackRock, Commonwealth Bank of Australia, Mubadala, and Canada Pension Plan Investment Board. The bottom line: Fintech IPOs have been scarce, but a successful Klarna listing could lead to more. Ryan Lawler covers fintech dealmaking for Axios Pro Deals. Learn more
