Recent move: Klarna struck a deal with Elliott Investment Management to sell up to $6.5 billion in US "Fair Financing" loans over the next two years. These are not short-term, no-interest BNPL loans - they're fixed-term installment loans, with Klarna retaining underwriting and servicing duties. Capital efficiency - By selling receivables under a forward-flow agreement, Klarna frees up balance sheet capacity to issue more loans.
Growth in U.S. markets helped Swedish fintech firm Klarna to achieve a 26% jump in third-quarter revenue, beating expectations in its first report as a public company and forecasting revenue above $1 billion in the current quarter, the company said on Tuesday. The buy now, pay later lender, which went public in September in New York, reported revenue of $903 million, beating analysts' expectations of $882 million, according to data compiled by LSEG.
