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The links between tech, commerce, and finance behind Klarna’s $45B valuation and Pinduoduo’s $150B marketcap

This week, we cover these ideas:

  • Klarna’s $640 million raise and its $45 billion valuation, and how its business model arbitrages the payments revenue pool to build a lending business

  • Pinduoduo’s growth path to a $150B marketcap, and the links between shopping, media, and financial mechanisms that help it compete with Alibaba

  • A comparison of approaches to growth and economics

  • Implications for crypto assets for capturing “the real economy”

Klarna is raising $640 million on a $45 billion private valuation, with over $1 billion in net operating income. The buy-now-pay-later company has over 90 million active customers and 250,000 merchants. It was founded in Sweden in 2005.

On the other side of the ocean, Chinese ecommerce company Pinduoduo is beating Alibaba with 820 million active buyers, generates over $3 billion in revenue per quarter, connects buyers to 12 million farmers, and has a market capitalization of $150 billion. It was founded in China in 2015.