Lina Gallagher’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

#SecondaryOpportunity | Everyone's heard about Klarna – but it's no longer just the go-to for "buy now, pay later." Klarna is now a profitable, innovative fintech with global reach, ready for its next leap. "We want to become the world’s favorite way to shop," says co-founder Sebastian Siemiatkowski. In the first half of 2024, Klarna’s revenue rose 27% year-on-year to €1.13 billion, with an adjusted operating profit of €57.2 million – a major turnaround from last year’s losses. The US market has been a key driver, with 38% revenue growth, expanding Klarna’s global footprint. At SeedBlink, we're offering an exclusive secondary investment opportunity in Klarna, that recently filed for US-IPO.  ⏰ This opportunity is time-sensitive, closing soon. Explore it today - https://lnkd.in/dYRdUtaj https://lnkd.in/dehqsxm4

How would your morale be, working every day for a guy whose mission is to fire you? This situation with #Klarna illustrates the contrast between the idealized view of companies as places of mutual bonding and shared goals, and the reality of corporate pragmatism. The illusion breaks down when your leadership is explicitly focused on reducing the workforce the most they can, as fast as possible and showing so much pride in doing it. To be fair, Klarna was always a mess of a company. Here's a summary of what this company became known for over the years: - Unprofitable Unit Economics – BNPL is a terrible Business Model. Klarna struggles with consistent profitability due to thin margins and high operational costs. - Aggressive expansion – Rapid growth particularly in the U.S. led to impressive losses and high operating expenses. - Credit risk and refaults – Concerns about rising default rates as Klarna lends to financially stretched consumers. - Misleading marketing – Accused of downplaying the risks of debt and promoting irresponsible consumer spending. - False profitability claims – Made claims of profitability that were contradicted by subsequent financial losses. - No path to profitability – Reliance on transaction and late fees, with no solid long-term plan for sustainable profit. - Overinflated valuation – Valuation surged during #fintech hype, then dropped by over 85%, raising concerns about overvaluation. - Regulatory scrutiny – Increased oversight from regulators due to concerns about consumer protection and lending practices. He could fire 99% of staff and he still wouldn't make this thing work, because the problem is not the employees. https://lnkd.in/ekHUphd6 #klarna #AI #IA #BNPL

STOCKHOLM, SWEDEN, August 21, 2024 – Klarna’s acquisition of Laybuy’s assets in New Zealand is set to reinvigorate the BNPL provider with Klarna’s innovative touch. Klarna's Strategic Move: Klarna, an AI-driven global payments network, will bring enhanced payment flexibility and superior user experiences to New Zealand’s consumers and merchants. Building on Laybuy's Legacy: David Sykes, Chief Commercial Officer at Klarna, states, “Laybuy is a cherished brand in New Zealand, and we're excited to build on those foundations. Exciting plans are ahead!” A Seamless Shopping Revolution: Laybuy, serving over half a million consumers and 10,000+ merchants since 2017, will benefit from Klarna's global experience—85 million active users and 2.5 million transactions daily. Future Prospects: Klarna, with 550,000 global retailers, including Uber, Airbnb, H&M, Sephora, Macy’s, and Nike, is driving commerce into the future 🚀. Over the past two years, Klarna has increased its user base by 35% and transaction volumes by 50%. From today, Klarna will engage with Laybuy’s users about what’s next. #Fintech #BNPL 🔗 https://lnkd.in/ekFwGMjm

🎂 A double celebration today - my #39 birthday and Klarna unveiling a ⭐ stellar performance in the 2024 Q1 earnings release! Thrilled to witness 🚀 growth on all fronts! At Klarna 📈 Globally, revenue +29%, gross profit +22%, and another quarter of positive adj. operating income! 🇺🇸 In the US, our biggest market, revenue +38% YoY, and gross profit 🤯 +97%! 🧠 Artificial Intelligence continues to make a huge impact in driving efficiency across the board. 9 out of 10 employees use AI on daily basis, confirming Klarna's AI pioneering role in fintech and banking. On personal side 👦 Age increased 1 YoY, but down 5 excluding FX. In real terms, I am still young! #klarna #earnings #fintech #finance #artificialintelligence #ai #leadership

Lessons from Klarna: Lesson 5 "Fast iteration beats everything else. Except for a few fundamental, hypercritical, and one-way-door decisions, iterating fast is the best way to progress with anything. It applies to product (with MVPs and fast iteration for new features), to building teams (hire slow, fire fast), to commercial actions (always find a new angle)."

🤔 How can group purchasing change the way we shop this holiday season? Get ready for a game-changer in the world of fintech! This week at TechCrunch Fintech, we're taking a close look at PayPal's exciting revival of its money-pooling feature, perfect for those group gifts and holiday splurges. With all the buzz around Klarna’s ambitious IPO plans for 2025 and Kintsugi’s rapid valuation doubling in under a year, there’s never been a better time to explore how technology is reshaping our shopping experience. PayPal is stepping up, making it easier than ever to coordinate purchases among friends and family, whether you're chipping in for a big ticket item or just splitting costs amongst your crew. With this user-friendly feature back on the scene, how do you think it will affect your online shopping habits? Share your thoughts! And if you’re looking to connect with innovative startups driving corporate transformation, don’t miss out on valuable opportunities—book a meeting with us today! 🚀 [https://lnkd.in/emcQkMx4) #Fintech #PayPal #GroupPurchasing #HolidayShopping #KlarnaIPO #Kintsugi #Innovation #TechTrends #DigitalPayments #Ecommerce Read more about these developments here: https://lnkd.in/dzxzivf4

🤔 How can group purchasing change the way we shop this holiday season? Get ready for a game-changer in the world of fintech! This week at TechCrunch Fintech, we're taking a close look at PayPal's exciting revival of its money-pooling feature, perfect for those group gifts and holiday splurges. With all the buzz around Klarna’s ambitious IPO plans for 2025 and Kintsugi’s rapid valuation doubling in under a year, there’s never been a better time to explore how technology is reshaping our shopping experience. PayPal is stepping up, making it easier than ever to coordinate purchases among friends and family, whether you're chipping in for a big ticket item or just splitting costs amongst your crew. With this user-friendly feature back on the scene, how do you think it will affect your online shopping habits? Share your thoughts! And if you’re looking to connect with innovative startups driving corporate transformation, don’t miss out on valuable opportunities—book a meeting with us today! 🚀 [https://lnkd.in/emcQkMx4) #Fintech #PayPal #GroupPurchasing #HolidayShopping #KlarnaIPO #Kintsugi #Innovation #TechTrends #DigitalPayments #Ecommerce Read more about these developments here: https://lnkd.in/dzxzivf4

On Tuesday, Swedish FinTech company Klarna announced the results from its first month using a globally available AI assistant. The numbers are staggering. Per the press release: - The AI assistant has had 2.3 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐜𝐨𝐧𝐯𝐞𝐫𝐬𝐚𝐭𝐢𝐨𝐧𝐬, two-thirds of Klarna's customer service chats - It is doing the equivalent work of 700 𝐟𝐮𝐥𝐥-𝐭𝐢𝐦𝐞 𝐚𝐠𝐞𝐧𝐭𝐬 - It is on par with human agents in regard to customer satisfaction score - It is more accurate in errand resolution, leading to a 25% 𝐝𝐫𝐨𝐩 𝐢𝐧 𝐫𝐞𝐩𝐞𝐚𝐭 𝐢𝐧𝐪𝐮𝐢𝐫𝐢𝐞𝐬 - Customers now resolve their errands in 𝐥𝐞𝐬𝐬 𝐭𝐡𝐚𝐧 2 𝐦𝐢𝐧𝐬 𝐜𝐨𝐦𝐩𝐚𝐫𝐞𝐝 𝐭𝐨 11 𝐦𝐢𝐧𝐬 𝐩𝐫𝐞𝐯𝐢𝐨𝐮𝐬𝐥𝐲 - It's available in 23 markets, 24/7, and 𝐜𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐞𝐬 𝐢𝐧 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 35 𝐥𝐚𝐧𝐠𝐮𝐚𝐠𝐞𝐬 - It's estimated to 𝐝𝐫𝐢𝐯𝐞 𝐚 $40 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐔𝐒𝐃 in profit improvement to Klarna in 2024 The notion that the AI is doing the work of 700 full-time agents is interesting. In mid-2022, Klarna laid off the same number of people. If you remember, it made the news because the CEO, Sebastian Siemiatkowski, announced the layoffs in a pre-recorded Zoom message. Klarna maintains the 700-person figures are a coincidence, and I tend to believe them - I doubt they could have known their AI agent would work so well so quickly. But it also raises an important consideration as we're forced to grapple with how to retrain and retask a workforce sure to be disrupted by AI. At the very least, I would have left that stat out of the press release! Stats and Image from Klarna. Full press release in the comments.

🤔 How can group purchasing change the way we shop this holiday season? Get ready for a game-changer in the world of fintech! This week at TechCrunch Fintech, we're taking a close look at PayPal's exciting revival of its money-pooling feature, perfect for those group gifts and holiday splurges. With all the buzz around Klarna’s ambitious IPO plans for 2025 and Kintsugi’s rapid valuation doubling in under a year, there’s never been a better time to explore how technology is reshaping our shopping experience. PayPal is stepping up, making it easier than ever to coordinate purchases among friends and family, whether you're chipping in for a big ticket item or just splitting costs amongst your crew. With this user-friendly feature back on the scene, how do you think it will affect your online shopping habits? Share your thoughts! And if you’re looking to connect with innovative startups driving corporate transformation, don’t miss out on valuable opportunities—book a meeting with us today! 🚀 [https://lnkd.in/eYTZTHeT) #Fintech #PayPal #GroupPurchasing #HolidayShopping #KlarnaIPO #Kintsugi #Innovation #TechTrends #DigitalPayments #Ecommerce Read more about these developments here: https://lnkd.in/dHmHQAEs