CompanyValueRadar’s Post

Klarna's AI Shift Klarna, having already dismissed over 1000 employees partially due to AI advancements, is now planning to cut its current headcount from 3,800 to just 2,000 - almost halving it - over the next few years. With service times reduced from 11 to 2 minutes, an increase of 73% on revenue per employee and reverting negative results to whooping €66mi profit, the company’s  IPO valuation is estimated to reach $20 billion. Albeit undeniably aggressive in its approach, Klarna is a prime example of how AI is not just influencing but revolutionising the business landscape. Scary or impressive? https://lnkd.in/eubW3WkY #ai #fintech #business #ipo #artificialintelligence

testin🌌Are you ready to embark on a journey through the cosmos of fintech and tech wonders?🚀 The Thursday morning update unravels a galactic tale of Stripe's meteoric rise 😮 to a valuation of $65 billion through an employee stock-sale deal, but that's not all— a tender offer for liquidity awaits. Adyen and Qoo10 have joined forces, so expect smoother payment processes ahead. Dwolla has set its sights on launching groundbreaking services, so anticipate a revolution in account-to-account payments. 🪐But wait, the saga continues with Dropbox, Affirm, Square, Klarna, and Instagram unveiling their own celestial innovations within their niches.🛸 Through these cosmic endeavors, we witness the pulsating heartbeat of the financial and tech universes, so full of growth and innovation. Companies are expanding, partnering, and introducing services, so brace yourself for the technological whirlwind reshaping our digital future. Amidst successes and challenges, we glimpse the competitive marketplace transforming towards enhanced digital experiences. So, what cosmic breakthroughs will unfold next in this fast-paced galaxy of finance, payments, and tech? 🤔 ⭐️Seize the opportunity to navigate your own stellar trajectory by being proactive and promoting yourself! Visit us at https://lnkd.in/gUxjfrt7 for 30 days of social media posts.⚡️ #fintech #techsector #innovation #financialservices #digitaltransformation #cosmicevolutions #technologicaladvancements

Klarna, the Swedish fintech giant, is gearing up for a blockbuster IPO later this year with a projected $20 billion valuation. As a leader in payments, shopping, and banking, Klarna's innovative buy now, pay later (BNPL) model has propelled it to new heights. With AI integration, Klarna has optimised operations, slashing costs, and enhancing customer service. Don't miss out on this game-changing opportunity! 🔵 Operates in the fintech industry, specifically providing buy now pay later services. 🔵 It has millions of customers worldwide. 🔵 Utilised chatbots powered by artificial intelligence to automate tasks and cut down on operating expenses. #Klarna #Fintech #AI #IPO #Fintech #Innovation

#Klarna Files for #IPO in the #US with a $15B Valuation – A Steep 85% Haircut from 2022 Here are few recent announcements by #Klarna in preparing for IPO: (1) Launch of #Klarna Plus #Subscription Service (January 2024): Klarna introduced a $7.99/month subscription offering double reward points, exclusive discounts, and waived service fees, aiming to boost #customer #loyalty and create a steady #revenue stream. (2) #AI Integration in Customer Service (February 2024): Klarna’s AI-powered assistant, leveraging OpenAI technology, now handles two-thirds of customer service chats, greatly enhancing efficiency and customer satisfaction. With the holiday shopping season approaching and M&A activity ramping up amid the political landscape, Klarna's IPO comes at a strategic moment. Can they rebound from the significant valuation drop and emerge stronger as a leader in the #payments space? The world will be watching. #Klarna #IPO #FinTech #Innovation #AI #CustomerService #SubscriptionEconomy #MergersAndAcquisitions #TechNews #StartupSuccess #bnpl #buynowpaylater #digitalpayments #installmentlending #posloans #lending #chatgpt #bigdata

🚀 𝐊𝐥𝐚𝐫𝐧𝐚'𝐬 𝐣𝐨𝐮𝐫𝐧𝐞𝐲 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐚𝐝𝐯𝐞𝐫𝐬𝐢𝐭𝐲 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐧𝐨𝐭𝐡𝐢𝐧𝐠 𝐬𝐡𝐨𝐫𝐭 𝐨𝐟 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐯𝐞, 𝐞𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐚𝐬 𝐚 𝐛𝐞𝐚𝐜𝐨𝐧 𝐨𝐟 𝐢𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐭𝐡𝐞 𝐁𝐮𝐲 𝐍𝐨𝐰, 𝐏𝐚𝐲 𝐋𝐚𝐭𝐞𝐫 (𝐁𝐍𝐏𝐋) 𝐬𝐩𝐚𝐜𝐞. After a challenging period and making tough decisions, including layoffs, Klarna is not just staging a comeback; it's leading the future of shopping with cutting-edge AI technology. This sets the scene for what's shaping up to be the blockbuster IPO of 2024. Here’s a snapshot of Klarna’s remarkable turnaround and strategic milestones (thanks to Linas Beliūnas for this data): 1️⃣ 𝐒𝐭𝐞𝐥𝐥𝐚𝐫 𝐆𝐫𝐨𝐰𝐭𝐡 𝐀𝐦𝐢𝐝𝐬𝐭 𝐆𝐥𝐨𝐛𝐚𝐥 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬: Klarna's impressive 17% growth in Gross Merchandise Volume (GMV) has remarkably outstripped global eCommerce growth by seven times. This isn’t just a comeback; it’s a testament to a restructured business model that’s paying dividends. 2️⃣ 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐑𝐞𝐛𝐨𝐮𝐧𝐝 𝐚𝐧𝐝 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐒𝐜𝐚𝐥𝐢𝐧𝐠: The journey from a $1B net loss in 2022 to a significantly reduced $241M loss in 2023, coupled with a revenue surge to $2.3B. A gross profit margin of 50%, up 12 percentage points. 3️⃣ 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 𝐚𝐭 𝐈𝐭𝐬 𝐂𝐨𝐫𝐞: Klarna's bold move into AI, particularly with its ChatGPT-powered assistant handling 70% of customer inquiries, reflects a strategic pivot to enhance efficiency and leverage AI capabilities, despite the controversy over its impact on employment. Klarna’s ambition extends well beyond revamping its financial and operational frameworks. Its evolution into a Super App, offering a suite of services from banking to a unique commerce search engine and shoppable content, cements its position as the ultimate future shopping destination, aspiring to be the "Google of Shopping." 📣 For eCommerce stores yet to adopt BNPL, the message is clear: integrating options like Klarna isn't just an upgrade—it's essential to stay competitive in today's market. #EmerceConsulting #Klarna #FinTech #BNPL #AI #Ecommerce #IPO2024

Klarna aims to extend artificial intelligence-driven cuts to its workforce with plans to axe almost half of its staff, as the lossmaking Swedish buy now, pay later company gears up for a stock market flotation. Chief executive Sebastian Siemiatkowski heralded the benefits of AI in Klarna’s second-quarter results on Tuesday, which showed a significant narrowing of its net loss from SKr854mn ($84mn) a year earlier to SKr10mn. The Swedish fintech has already cut its workforce from 5,000 to 3,800 in the past year. Siemiatkowski told the Financial Times that Klarna could employ as few as 2,000 employees in the coming years as it uses AI in tasks such as customer service and marketing. “Not only can we do more with less, but we can do much more with less. Internally, we speak directionally about 2,000 [employees]. We don’t want to put a specific deadline on that,” he added. Siemiatkowski has become one of the most outspoken European tech bosses about the benefits of AI, even if it leads to lower employment, arguing that is an issue for governments to worry about. What experiences have you had personally or observed in your (or any other company’s) workplace? #SocietalAI #AI4Everyone #workplaceculture #augmentedintelligence #humanandAI #4IR

What Exactly is a Platform in Fintech? In fintech, a #platform refers to a business that connects buyers and sellers, or consumers and merchants, in one seamless digital space. Think of it like a marketplace where all transactions happen in one place. But here’s the catch—it’s not just about offering a place to meet. For a platform to scale, it has to onboard third-party sellers, creating an ecosystem where multiple sellers can reach customers. Another critical element? Ensuring smooth, secure payments—whether it’s accepting a variety of digital payment options or ensuring sellers are paid on time. 🔍 Market Example: Take Amazon for instance. Though it’s known for e-commerce, Amazon also operates as a fintech platform by allowing third-party sellers to offer products. Amazon facilitates secure payments and ensures quick payouts, building trust between buyers and sellers. At its core, a fintech platform is about creating opportunities for seamless connections and transactions, driving innovation across the digital economy. 🤔 What platforms have you used, and what’s your experience been like? #Fintech

Apple’s new AI and more…. While everyone has been focused on Apple’s new iOS 18 and partnership with OpenAI, Apple has also partnered with loss-making firm Affirm for Buy now, Pay later purchases (BNPL). While Apple once again became the world's most valuable company on 12th June 2024 with its shares jumping nearly 4%, Affirm’s shares were up more than 11%. While this partnership might not be the talk of the talk in relation to Apple, for an unprofitable firm like Affirm it’s a really big deal! Who is Affirm? Affirm Holdings is an American fintech company founded by PayPal co-founder Max Levchin in 2012. They generate their revenue in two ways: charging interest on certain loans and collecting merchant fees, where businesses pay a commission for the service. Since 2019, the company has achieved only a single profitable quarter. This reflects how sustainable profitability has been a far cry for Affirm. A partnership with Apple, the world's most valuable company at the moment might change this! This BNPL option however will be available to only Apple Pay users across the US for now. Picture credits: MSN #Apple #AI #Affirm #Tech #BNPL #OpenAI

💰 I wrote a new article for EM360Tech about Klarna, the fintech giant's move toward AI strategy. 🖥️ The pay now, pay later firm has already cut its workforce considerably and plans to cut nearly 50% of its employees in the coming years – from 3,800 to 2,000. This strategic shift towards AI aims to streamline operations and improve efficiency. 💬 What are your thoughts on the implications of this trend for the future of work? 💡 Follow this link to read the article: https://lnkd.in/euhcpBvV #AI #Fintech #JobMarket #Klarna #Automation #FutureOfWork

Emulating Klarna Had a chance to speak with Jens Dressler - founder of graphapi® on this last night (interview to be published soon) In a bold move, Klarna recently announced a significant shift in their operational strategy by parting ways with several major SaaS providers like #Salesforce and #Workday. Instead of relying on traditional software solutions, they're embracing #AI to reimagine their workflows. Jens has seen 3 tech bubbles (starting with the Y2K!) and yet believes this is the “greatest technology shift he will see in his lifetime” He believes that for companies looking to stay ahead of the curve, now is the time to consider how to emulate Klarna's innovative approach. Klarna developed AI tools and workflows internally but majority of businesses can’t afford to do so as they do not possess these tech capabilities in-house - presenting a gold rush for new age SaaS vendors / AI native tools and channel partners who specialise in this area It’s the dawn of a new era ☀️ #6am #thoughts #morning😄