Klarna confirms how expensive fintech growth can be – Technology Flow

Now equal value to Affirm, what can we learn from the Swedish giant’s first half of the year?

How profitable Buy Now Pay Later (BNPL) Market? New data from Klarna and recent earnings results from Affirm make it clear that building a global business in the fintech space is cost-effective.

Two companies, Affirm American and Klarna Swedish, are among the most valuable players in the BNPL market today. Both recently announced financial results.

Today we’re looking at Affirm’s earnings for the second calendar quarter of 2022 and Klarna’s earnings for the first half of the same year, and asking ourselves what we can glean from each dataset. (And, listen, it’s a bit of a slog. If you want to trust our math and skip the currency conversion, scroll down to the “Why is BNPL losing so much money?” section.)


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Remember that Klarna recently dropped $6.7 billion in its latest funding round. Before the opening bell today, Affirm was valued at $6.74 billion, according to Yahoo Finance. The two companies temporarily have the same valuation which means we have a firmer basis for comparing them than we normally would. We first discuss their results individually, then contrast them with each other and their shared value.

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