Klarna’s Sebastian Siemiatkowski and the curious case of tweeting tech CEOs
Sebastian Siemiatkowski, Co-founder and CEO at buy now, pay later big hitter Klarna, has been at it again on Twitter.
Early last week, he set his sights on Martin Lewis, after the financial journalist, broadcaster and founder of the MoneySavingExpert website criticised Deliveroo for adding Klarna as a payment option.
Siemiatkowski tweeted: “Interesting @MartinSLewis! @Deliveroo should accept credit cards with up to 54% interest…But not Klarna that offers debit and interest free credit? Curious, does your money saving website make affiliate money from selling credit cards?”
He then doubled down, responding to an article in which Lewis explained how to use 0% credit cards to make money.
“Good safe advice? Don't use debit=money you have, and sometimes BNPL at 0% no late fees. Use credit cards, borrow against all spending+invest the money. Be lured into 54% revolving? Moneysaving expert @MartinSLewis, do you make money selling credit cards?”
He added: “Klarna is NOT BNPL. BNPL is just 1 of many features. Klarna is a payments network like VISA or MasterCard. 40% of our transactions are debit. Our ethical standards for credit are much higher than VISA/MC. No late fees. No revolving. No limit in your face. Interest caps much lower.”
Klarna is not buy now, pay later. Erm, OK, Seb…
Taking on the media
Last month, Siemiatkowski took to Twitter to lambast the media for its coverage of his company.
In a post, he said: “Fascinating learning in my life is the full disconnect between media's"truth" about Klarna vs actual state of Klarna.”
“Perception vs reality, sometimes benefit or not. Established incorrect "truths" impossible to correct. And tweeting some reason into it=screaming into a storm.”
Siemiatkowski didn’t reveal who exactly upset him and what they said, but, dare we suggest, it was possibly to do with Klarna posting and operating loss of 6.17billion Swedish crowns (£497 million) for the first half of 2022, compared to 1.76billion crowns in the same period last year.
The FinTech blamed this on rapid international expansion, higher credit losses in new markets, and rising staff costs.
Klarna last reported a profit four years ago before embarking upon an ambitious growth strategy.
However, it has been hit by a slowdown in consumer spending amid soaring rates of inflation, while facing a looming regulation of buy now, pay later products.
Its market valuation has tumbled to $7 billion after a fresh funding round in June. This marked an 85% drop from a peak of $46 billion last year.
“We’ve had a few years now where growth has been really heavily prioritised by investors. Now, understandably, they want to see profitability,” Siemiatkowski said.
Our advice to Siemiatkowski: we get that you’re passionate about your brainchild, but don’t be criticising the media and national treasures like Martin Lewis on Twitter.
It’s never a good look when CEOs of under pressure, former FinTech darlings start letting off steam on social media platforms.
Echoes here of Ryan Breslow, founder of online checkout technology startup, Bolt, who earlier this year was constantly sounding off on Twitter, including an extraordinary attack on Instacart investor Sequoia Capital.
While Breslow found some supporters online, he was also slammed for his comments, including by heavyweight investors, and he ultimately stepped down as the CEO of Bolt and became its Executive Chairman.
Let’s leave it at that…
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