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Can Klarna and its rivals survive an economic downturn?
- mytailorisrich 4y agoI don't think that Klarna's issues are caused by the economic downturn at all. If anything demand for credit, especially "Buy Now, Pay Later" products, should rise when the economy dips. IMHO, the issue is that the company has been developing like many tech startups do by burning huge amounts of VC cash on 'growth' without any regard for profitability, and now things start to come back to reality. A $250m loss for $1.6b in revenue is rather incomprehensible for the industry they are in (which is finance, not tech).