Klarna, the global leader in the buy now, pay later (BNPL) market, has recently announced its acquisition of the assets of the bankrupt BNPL firm Laybuy in New Zealand. This strategic move comes after Laybuy, a once-prominent player in the industry, entered receivership in June following its unsuccessful attempts to secure a buyer for its faltering business.
Laybuy’s Rise and Fall
Founded in 2017, Laybuy quickly became a popular BNPL option in New Zealand, boasting a user base of over half a million consumers and a network of more than 10,000 affiliated merchants. The company expanded its reach by listing on the Australian Stock Exchange (ASX) in 2020, where its shares initially traded at a peak of A$2.30. However, Laybuy’s fortunes took a sharp downturn, with its share price plummeting to just A$0.006 by the time it delisted from the ASX in 2023.
The company’s troubles were compounded in July 2022 when it was forced to cut its workforce by a third due to its failure to raise new capital. Additionally, Laybuy abandoned plans to separate its UK operations, which it had initially pursued as a strategy to focus on its core markets.
Klarna’s Strategic Acquisition
Klarna’s acquisition of Laybuy’s assets is a significant development in the BNPL landscape, particularly in the New Zealand market, where Klarna has had a minimal presence. Klarna, which itself reduced its New Zealand workforce from six to two employees between 2022 and 2023, is now poised to relaunch the Laybuy brand under its own umbrella.
David Sykes, Chief Commercial Officer at Klarna, expressed his enthusiasm for the acquisition, stating, “Laybuy established itself as a cherished brand in New Zealand, and we’re excited to build on those foundations to take Laybuy to new heights under the Klarna umbrella. We have some truly exciting plans and can’t wait to begin sharing them with consumers and merchants.”
Future Prospects
The relaunch of Laybuy by Klarna signals a potential revival of the brand in New Zealand, where it has enjoyed significant consumer loyalty. While Klarna has yet to detail its specific plans, the acquisition is likely to involve integrating Laybuy’s established merchant network and customer base into Klarna’s broader BNPL ecosystem.
Notably, Laybuy’s UK-based entities, which were not included in the receivership, continue to operate. This could present further opportunities for Klarna to leverage Laybuy’s existing infrastructure and market presence in the UK.
The acquisition underscores Klarna’s commitment to expanding its global footprint and consolidating its position as a leader in the BNPL market. As Klarna prepares to reintroduce Laybuy in New Zealand, both consumers and merchants are eagerly awaiting the innovations and services that Klarna will bring to the table under this new arrangement.
The next few weeks will be crucial as Klarna rolls out its plans and redefines the future of BNPL in New Zealand with the revitalized Laybuy brand.