Online lender Cloner priced its IPO at $40 a share that was above the expected range. The deal values the Swedish fintech company at roughly $15 billion. The stock is set to begin trading today on the New York Stock Exchange.Its ticker KL CEO Sebastian Simatowski uh joins us right here for a CNBC first on CNBC interview. Um congratulations. Thank you.Uh nice to have you. been on many times but the first uh first appearance as a public company you know we continue to describe you as many others do buy now pa ...

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]

Time now to spotlight the IPO pipeline, state of the IPO market with Clara set to make its debut here at the big board. Joining us now is Jim Niss, managing partner at Connor Group. Jim, thank you so much for joining us here. Diane, thank you.All right, so let's talk about this IPO. Got a little bag of goodies here from Clara representing on the floor today. Um, I didn't have to put that on BNPL.Uh so look, it's one of the most anticipated IPOs this year coming in at a roughly $15 billion IPO. What is it ab ...

Caroline and I have quizzed you over the years on when an IPO happens. Why it happens. I just want to bring you some news, if I may.In the time that we've come on air, there's a headline on the Bloomberg terminal that the shares are indicated to open between 50 and $52 each. You priced the IPO at 40. Just summarize your reaction to that and what it means to you on a day like today.I'm happy I didn't hear what you said on the price or I pretend not to hear it so I don't have to comment on it. We'll find out ...

Caroline and I have quizzed you over the years on when an IPO happens. Why it happens. I just want to bring you some news, if I may.In the time that we've come on air, there's a headline on the Bloomberg terminal that the shares are indicated to open between 50 and $52 each. You priced the IPO at 40. Just summarize your reaction to that and what it means to you on a day like today.I'm happy I didn't hear what you said on the price or I pretend not to hear it so I don't have to comment on it. We'll find out ...

Investment & Shareholding - Sequoia is selling 21 million shares in the IPO and will retain a stake of more than 20% after the debut, making it the largest shareholder [1] - Sequoia first invested in the company 15 or 16 years ago [2] Company Overview & Vision - The company, initially an alternative payments company based in Sweden, has grown significantly [3] - The company's vision is to save consumers time and money, and help them have more control over their finances [4] - The company has over 100 million consumers and over 100 billion in GMBB across 26 countries [3] Growth Strategy - The two main vectors of growth are a card in every wallet and availability at every checkout [5] - The company aims to partner with big merchants like Walmart, eBay, and Airbnb, as well as major global PSPs [6] Market & Competition - The company aims to break through the credit card wall [6][7] - Gen Z sees a lot of value in using the company's services as opposed to traditional credit cards [9] - Despite its brand recognition, the company's share in fintech in the US is still small [10]

Company Overview - Sequoia is selling 2.1 million shares in the IPO and will retain a stake of over 20%, making it the largest shareholder [1] - The company, initially a small alternative payments firm based in Sweden, has grown to serve over 100 million consumers and has a gross merchandise volume (GMV) exceeding $100 billion across 26 countries [3] Vision and Evolution - The founder, Sebastian, has maintained a consistent vision since the company's inception, focusing on saving consumers time and money while providing them with more control over their finances [4] - The product suite has evolved, but the core value proposition remains appealing, especially to younger consumers [5] Growth Opportunities - The two main growth vectors identified are achieving a CLA card in every wallet and ensuring CLA is available at every checkout [5] - Partnerships with major merchants like Walmart, eBay, and Airbnb, as well as global payment service providers (PSPs), are crucial for expanding consumer access to CLA [6] Market Dynamics - There is a notable shift in consumer preferences, particularly among Gen Z, who see value in using CLA over traditional credit cards [9] - Despite the rise of alternative payment methods, traditional credit card companies continue to perform well, indicating potential coexistence rather than outright displacement [10]

After becoming one of the early adopters in Europe of artificial intelligence, Klarna CEO Sebastian Siemiatkowski says the lender may have gone too far in using the technology to cut costs at the expe... ...

Core Insights - Klarna's CEO acknowledged that the company may have over-relied on artificial intelligence for cost-cutting, leading to a shift in focus towards enhancing services and products [1][3] - The company made its market debut in New York, with shares rising 30% to $52, valuing Klarna at $19.7 billion, significantly above its IPO price of $40 [2][4] - Klarna has implemented significant job cuts and vendor changes, transitioning to AI for marketing campaigns, but is now attempting to correct its rapid adoption of the technology [3][4] Financial Performance - Klarna raised $1.37 billion in its U.S. IPO, valuing the company at $15 billion, which may influence future high-growth fintech listings [4] - The company reduced its workforce from 5,000 to 3,800, with further reductions anticipated as it utilizes AI for customer service, where a chatbot is performing the work of 700 employees [4][6] Productivity and Growth Strategy - Although Klarna saved approximately $2 million by replacing Salesforce with AI tools, the CEO emphasized that investors are more focused on growth and customer offerings rather than cost savings [6] - The company is now actively hiring again, with over two dozen positions available, indicating a shift back towards human resources [5] Market Position - Klarna is recognized for transforming online shopping through its short-term financing model and is now listing in the U.S., its largest market, where it competes with companies like Affirm [7]

Core Insights - Klarna, a Swedish fintech company known for its buy now, pay later services, is set to IPO on Wednesday, offering over 34 million shares at $40 each, potentially valuing the company at around $15 billion [1][2] - This valuation marks a significant decline from its peak valuation of $46 billion four years ago during the pandemic-driven surge in buy now, pay later services, but reflects a more stable market environment [2] Company Background - Klarna was founded nearly 20 years ago and has evolved into a prominent payment option globally, positioning itself as a viable alternative to traditional payment giants like Visa and Mastercard [2][6] - The company's cofounders, including Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, are noted for their transformative vision and operational capabilities, which attracted early investors [5] Investment Perspective - Mattias Ljungman, an early investor in Klarna, emphasizes the company's unique approach to payment processing, which involves creating separate rails for commerce rather than competing directly with established payment networks [5] - Klarna's platform offers merchants enhanced insights into customer behavior and purchase history, facilitating targeted marketing and potentially increasing sales, thus acting as a "conversion engine" for businesses [6]