Company Overview - Cloner, an online lender, priced its IPO at $40 per share, valuing the company at approximately $15 billion, with trading set to begin on the New York Stock Exchange under the ticker KL [1] Business Model - The company operates primarily on a buy now, pay later model, with 97% of its business coming from 0% interest loans funded by merchants, making it a more affordable option compared to credit cards [2] - Cloner has signed 700,000 card customers in the US over the last six weeks, with a waiting list of 5 million, indicating a significant opportunity to disrupt the credit card industry [3] Target Market - The company targets a demographic known as "self-aware avoiders," who prefer fixed installments and 0% interest over traditional credit cards, representing about 20% of American households [4][5] Consumer Behavior - Despite concerns about loan defaults earlier in the year, consumer sentiment in the US remains positive, with spending levels maintained despite inflation leading to fewer products for the same dollar amount [6][7] Credit Quality - Cloner's credit model is distinct, with outstanding credit lasting only 40 days, allowing for quicker adjustments in underwriting compared to traditional banks [8][9] Operational Efficiency - The company has significantly reduced its workforce from 7,400 to 3,000 employees, focusing on efficiency and cost discipline, while promising to accelerate compensation for remaining employees due to AI-driven savings [12][14][15] Future Outlook - Cloner is shifting focus back to growth after prioritizing efficiency, indicating a balanced approach to scaling operations while maintaining cost control [16]
Klarna CEO: We think there's a huge opportunity to disrupt credit card industry in the U.S.