The most famous unicorns in the world are getting fit, demonstrating that it is possible to limit losses and still achieve growth. They are living experiments when it comes to companies that want to get slim without losing muscle.
European fintech giant Klarna is working on a valuation reset and a change in investor priority ahead of an eventual public offering. It’s not the only privately held tech company adjusting its valuation and working to scale its revenues and profitability to meet the new valuation realities that are still consuming the startup world.
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Here in the United States, Instacart is undergoing a similar transformation. Like Klarna, Instacart soared during the pandemic and saw its valuation explode as the company took an upward swing amid COVID-induced economic turmoil. And, like Klarna, it has had to lower its valuation and clip staff so that it can finally be made public.
Earlier this week, we dug into Klarna’s 2022 results, with a special focus on the Q4 data; the company’s full-year results obscured the fact that Klarna made material progress toward profitability as the year-end approached. That was more important than the historic losses from earlier in the year.
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