Core Insights - Klarna recently celebrated its $15 billion IPO, but the chairman highlighted that the company is significantly lagging behind its competitor, Revolut, by 10 years [1][3]. Company Overview - Klarna, a Swedish fintech, has approximately 111 million users and primarily generates revenue through merchant-funded zero-percent interest financing [9]. - The company is currently limited to payments and short-term lending, although it has initiated a US debit card pilot to expand into traditional banking and work towards its "super app" ambitions [8]. Competitor Analysis - Revolut, founded in 2015, has over 52 million customers and has evolved from a prepaid foreign exchange card to a comprehensive financial platform, aiming to become a full-service global bank [4]. - The stark comparison made by Klarna's chairman indicates a need for Klarna to accelerate its growth and diversification to compete effectively with Revolut [3]. Recent Developments - Klarna went public on the New York Stock Exchange, raising approximately $1.37 billion, which has contributed to its valuation of $15 billion [10]. - The CEO, Sebastian Siemiatkowski, engaged employees with a unique performance at the company's conference, emphasizing the importance of celebrating milestones while acknowledging the competitive landscape [2].

Core Thesis - Inter & Co, Inc. is positioned as a compelling investment opportunity due to its strong growth potential and favorable market dynamics, particularly in the Latin American and U.S. markets [1][4]. Company Overview - Inter & Co, Inc. is the second-largest neo-bank in Brazil, focusing on lending and expanding its presence in Latin America and the U.S. [2]. - The company's business model allows it to channel deposits into loan growth, resulting in one of the lowest funding costs in the industry [2]. Financial Performance - Inter has achieved a 5-year revenue CAGR of 57% and a return on equity of 14%, indicating its ability to scale profitably [3]. - The current P/E ratio is 19, but the market undervalues its long-term potential, pricing it at just 8x projected 2027 earnings [3]. Market Positioning - The expansion into the U.S. market provides Inter with access to a larger addressable market, enhancing its growth prospects [4]. - The combination of low-cost funding, a diversified product suite, and a growing international footprint positions the company for sustained earnings growth [4]. Investment Case - The current valuation suggests significant upside potential for investors, supported by strong fundamentals and a high growth trajectory [4]. - Inter's strategic market positioning and cross-monetization opportunities further enhance its attractiveness as an investment [5].