As growth across the fintech industry slows and contracts, we take a look at how fintech decacorns have been affected.
The news that the world’s largest and most successful Buy Now Pay Later company, Klarna, had lost US$40bn from its valuation, shocked the financial sector.
The Swedish lending giant had increased in size 10-fold over the pandemic period as online spending skyrocketed and government hardship packages and devaluation of currencies kept cash circulating across economies.
But when the party stopped, the drop in valuation was more dramatic than most experts had predicted. And although Klarna has by no means been the only fintech to suffer during increased interest rates, inflation and new industry regulations, it certainly fell hardest. The move has also signalled a re-evaluation of priorities for top fintech business leaders as valuations contract, hiring is paused and IPOs are delayed.
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