Klarna boss Sebastian Siemiatkowski slams media coverage of FinTech giant

Sebastian Siemiatkowski, Co-founder and CEO at buy now pay later big hitter, Klarna, has taken 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’s 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: don’t be criticising the media on Twitter.

It’s never a good look when CEOs of under pressure, former FinTech darlings cry foul about journalists on social media.

Buy now pay laterStaff WriterSebastian Siemiatkowski, Twitter, Klarna, Buy now pay later, FinTech, Payments, Social mediaComment