The gradual, sudden demise of the BNPL sector
Two years ago, buy now pay later companies were among the hottest on the ASX. Today, many have fallen back to earth, fallen off the exchange, or fallen over entirely.
It may have lost $413 million last year, but fallen market darling and buy now, pay later pioneer Zip Co insists the only way is up from here.
By its own measure, Zip's latest results last week were relatively good. The company achieved monthly profitability in the United States, Australia and New Zealand and its new CEO Cynthia Scott says the new strategy of "sustainable growth" will turn it cash positive by year's end.
But it's a far cry from some of the company's earlier messaging to the market. A couple of years ago, cofounder and former CEO Larry Diamond was arguing Zip would take on the credit card industry and win.
The market certainly isn't buying it these days. On Wednesday, Zip's share price was flirting with record lows as the company struggles to turn itself around in a fast-shrinking market.
