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Sebastian Siestkowski, CEO of Klarna, speaking at a Fintech event in London on Monday, April 4, 2022.
Chris Ratcliffe | Bloomberg through Getty Images
London – After 20 years in the role of CEO of Klarna, Sebastian Siemiatkowski is about to face his toughest test so far, since the financial technology firm is prepared for its debut in New York.
Siemiatkowski, 43, co -founded Klarna in 2005 with other Swedish businessmen Niklas Adalberth and Victor Jacobsson with the aim of assuming traditional banks and credit card companies with a easier online payments experience easier to use.
Today, Klarna is synonymous with “Buy now, pay later”, a payment method that allows people to buy things and differ the payment until the end of the month or pay their purchases on a series of equal monthly and interest installments.
But while Siemiatkowski has turned Klarna into a power of Fintech, his business trip has not been without his challenges, since facing the growing competition of rivals as PayPal, Say and BlockA after paying, to an 85%valuation drop.
However, Siestkowski has not taken those lying challenges and the open co -founder is not shy to challenge criticism in the period prior to an OPI that could value it at $ 15 billion.
‘Crazy enough’
In October 2024, CNBC met with Siamiatkowski during a visit to the Swedish businessman made to London. For a businessman who faced a roller coaster of ups and downs during his two -year CEO mandate, Klarna’s head has a quiet air for him.
“Regardless of all the cycles and everything we have happened to the company, at any time I wonder, do I still think Klarna can become the next one? Google In size, we can become a market company of hundreds of billions of dollars, or one billion dollars, “Siemiatkowski said to CNBC.” I am still crazy enough to think that this is possible. “
Once a love of the pandemic era valued at $ 46 billion in a financing round led by SoftBankClear He saw its 85% chopped assessment in 2022 to $ 6.7 billion As the increase in inflation and interest rates abolish the feeling of investors in high growth technology companies.
But the company has tried to rebuild that eroded value in the years they have followed.
Klarna earns money predominantly for the rates charged to merchants for providing their payment services, in addition to the income of interest financing plans and advertising income.
Financials revealed in his OPI presentation shows that Klarna reported revenues of $ 2.8 billion last year, 24% more year after year and a net gain of $ 21 million, above a net loss of $ 244 million in 2023.
Alcista in the AI
After the launch of the Opengai AI Chatgpt generative in November 2022, Siestkowski quickly pivot the Klarna approach to adopt technology, and especially in a way that could reduce costs and improve the profitability of the company.
However, Siestkowski’s strategy and his comments have also attracted the controversy.
Klarna imposed a freezing in hiring in 2023 while looking to tighten costs. The following year, the company said its chatbot AI was Do the work of 700 full -time customer service jobs.
The Klarna CEO said in August that his company was able to reduce its general labor force to 3,800 from 5,000 thanks in part to its application in areas such as marketing and customer service.
“Simply not hiring … the company is becoming smaller and smaller,” Reuters told the news agency, adding that the works were disappearing due to wear instead of layoffs.
Asked by CNBC about their views on AI and the annoyingSiemiatkowski suggested that “he finished apologizing”, comments from Mark Zuckerberg about the goal CEO “”20 -year error“To assume responsibility for the problems he believed that his company was not to blame.
Duplicating, Siemiatkowski added that AI “today can do many of the work that people do, but I don’t want to be one of the technological leaders who are in a stage and says:” Don’t worry about it, there will be new jobs “because I don’t know what those new jobs are.”
“I just want to be transparent and honest with what I think is happening, and I prefer to be open about that, because I know what these people, technological leaders say when they are not in public stages, and are not saying exactly the same things,” he told CNBC in October.
An open CEO
Siemiatkowski is no stranger to the defense of your company in response to criticism, especially when Klarna’s business model is challenged to offer short -term financing for all kinds of things, from clothing to food to wear online.
Last week, Klarna announced a link with Dordash to Offer your flexible payment options in the US food delivery application.. However, the measure was found with a violent reaction of Internet users, who said that it runs the risk of loading consumers with more debt difficulties.
A user x Posted a Meme Showing the personal finance expert Dave Ramsey with the title, “What do you mean that you have $ 11K in ‘Dordash Debt'”.
Siestkowski Ax took To defend the measure, saying that Klarna “offers many payment methods”, including the ability to pay in full instant or defer the payment until the end of the month, in addition to monthly installments.
“DORORASH offers many products beyond food!” Klarna’s boss said about X in response to criticism. “I know we are more famous to pay in 4. But you can also use a credit card in Dordash.”
In 2022, the open entrepreneur He emphasized that his company was “superior” to credit cards and “extremely recession proof” after the company fired 10% of your workforce.
As Klarna approaches her debut in the stock market, investors will probably analyze their history and if it remains the right person to lead the company in the long term.
Lena Hackelöer, CEO of Fintech Startup Britment Payments, based in Stockholm, is someone who worked under the leadership of Siestkowski, who worked for the company for seven years between 2010 and 2017 in several marketing functions.
He expressed admiration for Klarna’s co -founder, and withdrew the suggestions that leadership administered the business during the pandemic era.
“I never thought they had been badly administered, which is somehow how it was reported,” Hackelöer told CNBC in an November interview. “I think they were focusing a lot on growth, because that was the direction that investors were giving.”
roller coaster
Siemiatkowski admits that Klarna’s construction trip has not always been optimistic.
When asked about the greatest challenge he has faced as CEO, Siemiatkowski said that, for him, to fire 10% of Klarna’s workforce in 2022 was the most difficult thing he has had to do.
“That was very difficult because I did not predict that the feeling of investors would change as fast and people would go from valuing companies like ours and then something as low,” he said.
“Obviously, that is very difficult because, then you realize: ‘Ok, S —-, I will have to make a change. It will not be sustainable to continue, and I need to protect consumers, who are interested in the company, employees, investors, I need (I need) what is correct for all my constituents,” Siemiatkowski continued.
Klarna is synonymous with the trend “Buy now, pay later” to make a purchase and differ the payment until the end of the month or pay monthly installments without interest.
Nikolas kokovlis | Nurphoto | Getty images
“But unfortunately, it will affect the smallest group, which turned out to be about 10% of our employees.”
Like other technological companies, Klarna grew significantly on COVID-19 pandemic. In 2020, the company increased its gross merchandise volume or the total value of all processed sales through its platform, by 46% year after year, to $ 53 billion.
I think anyone who is a little healthy, that’s not something you take from light heart, right? It is a difficult decision. It makes you cry. I have cried.
Sebastian Siestkowski
CEO, Klarna
The company also incorporated hundreds of new employees to capitalize and expand the opportunity that saw the impact of the government on consumer behavior and the broader acceleration of the adoption of electronic commerce at that time.
“I think anyone who is a little healthy, that’s not something you take cheerful, right?” The CEO of Klarna said, referring to the dismissals. “It is a difficult decision. It makes you cry. I have cried.”
However, Siestkowski remained in his decision to fire workers: “I felt that I had the obligation of my voters, all, all these interested parties, the company, and I think it was a necessary decision at that time.”
The way to the IPO
Now, the Klarna CEO faces its greatest evidence so far, taking the business that co -founded two decades ago.
“OPIs are risky for companies, since shares prices can fluctuate quickly,” said Nalin Patel, director of EMEA Private Capital Research in Pitchbook, to CNBC by email. “They can be expensive and long to organize with investment banks as well.”
Klarna earlier this month He presented his prospect to list in the New York Stock Exchange. The company has not yet established a date for when it is made public, nor has it shares with a price.
If it succeeds, the result could catapult the net assets of Siestkowski and other shareholders, including Capital Sequoia, Silver Lake, Mubadala Investment Company and the Investment Board of the Canada Pension Plan.
Sequoia is the largest shareholder in Klarna with a 22%stake. Siemiatkowski is the second largest, has 7% of the business.
A positive OPI result would also raise the value of Klarna employees and potentially increased morals after a few turbulent years for the company.
“It is a balance between finding a fair value for existing investors seeking to collect and new investors looking for a participation in Klarna at a fair price. The company’s overvaluation could lead to its valuation falling in the future. While underestimating, it can mean that money has been left on the table for those who leave,” Patel said.
