Laybuy NZ finds buyer in AI-powered Swedish ‘unicorn’ payments network Klarna

Swedish company Klarna has been making waves - and now says it has acquired Laybuy in New Zealand. Photo / 123RF

Buy now, pay later (BNPL) provider Laybuy has found an AI-powered Swedish company to buy its New Zealand business.

Klarna, described as a payments network and shopping assistant, said it had acquired Laybuy’s assets in New Zealand.

In June, Laybuy in New Zealand was placed into receivership. David Webb and Robert Campbell of Deloitte were appointed receivers and managers over three Laybuy companies.

Today, Klarna said its acquisition of the company meant a “re-energised return” to business in this country.

“With Klarna’s extensive expertise and global presence, New Zealand consumers and merchants will benefit from a revitalised platform with superior payment flexibility and user experience.”

Klarna said it had more than 85 million global active users and 2.5 million transactions daily.

The Swedish company said it used sustainable, AI-powered payment and shopping solutions.

Deloitte confirmed Klarna had acquired Laybuy.

“As receivers, we’re pleased to announce that an agreement has been reached with Klarna to purchase the New Zealand assets of the Laybuy Group,” Campbell said.

After a sale process where several parties expressed interest in acquiring Laybuy, an unconditional sale agreement had been executed, he said.

“The transaction with Klarna ensures that in the coming months, New Zealand consumers and retail merchants will have ongoing access to a well-established buy now, pay later platform.”

Campbell said Klarna was an innovative provider of payment and shopping services and the sale was a chance for ongoing service to many customers and retail merchants affected by the receivership.

“Now that all transaction matters have been finalised, we’re working with Klarna to communicate with all Laybuy consumers and retail merchants regarding the relaunch of the new platform/offering.”

Fortune magazine last week said Klarna was rolling out bank accounts in Europe and the US as it prepared for a US$20 billion ($32.4b) initial public offering.

It described Klarna as a unicorn, a start-up valued at more than US$1b but not yet listed on a stock exchange.

Klarna said it would start connecting today with Laybuy’s estimated 500,000 New Zealand customers.

Laybuy had suffered from a downturn some operators in the sector experienced.

Managing director Gary Rohloff said in June he was “heartbroken” at the decision to request the appointment of receivers.

Rohloff today said he could not comment on Klarna.

BNPL boomed during Covid-19 lockdowns but consolidation, regulation, a return to more normal shopping habits, the rise of online rivals such as Temu and a sluggish economy have since presented challenges.

Rohloff in June said reduced consumer spending, higher credit losses and more fraudulent activity had hurt the company.

UK-based entities and some other entities in the Laybuy Group were not affected by the June receivership.

Laybuy Holdings Ltd operated the New Zealand business.

BusinessDesk on Monday reported Laybuy owed at least $15 million to on- and offshore creditors, according to the first receivers’ report.