Klarna CEO Laments Global Investment Environment
Sebastian Siemiatkowski, CEO of Swedish buy now, pay later (BNPL) firm Klarna, has expressed his frustration at the current global investment environment.
“The consequence of the new environment is that investors price companies differently,” he said at the Slush conference in Helsinki this week, Bloomberg reported Friday (Nov. 18). “It means that money isn’t as cheap as it was a year ago. It doesn’t allow you to invest as much into the future as you’d like to.
“We have to live with the reality that investors expect us to show a little bit more results here-and-now, rather than talking about the future,” he added, per the report.
In July, Klarna was subject to one of the most high-profile devaluations of the year after the company raised $800 million in financing at a $6.7 billion post-money valuation. That came after a massive $639 million funding round in June last year that valued Klarna at $45.6 billion.
During the Slush conference, Siemiatkowski said the BNPL provider needs to focus on engaging its existing users rather than acquiring new ones, according to the report. He added that the United States remains a “top priority” for the company even though expanding in the market has hurt the firm’s profitability in the past.
In order to diversify its offering, Klarna has been introducing new features, including a price comparison tool, shoppable video content, a donation feature and an upgraded CO2 tracker, as well as a platform that connects creators and retailers.
“The new products revealed today mark a major milestone in Klarna’s evolution to becoming a place where consumers and retailers can now search, discover and create,” Siemiatkowski said last month when the features were announced. “From inspiring product discovery all the way to delivery tracking, digital receipts and seamless returns — we are powering eCommerce and accelerating trade across the world.”
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