#BnplGoingToZero, page-494

Most financial institutions, along with insurers and the like, would be asking themselves (if they already haven’t), “what’s our exposure on zip”.

Boardrooms of those exposed, would be awash with c suite executives and their professional advisors.

Citi have been spot on, but you could say they all have, including Westpac selling out of their 10.7% at $6.65 a share, sighting more efficient use of capital. Westpac haven’t been so lucky with their options vesting as at last report.

Interesting (or smart) that no insto or large fund ended up buying in these last 12 months, they did Afterpay though.

BoA (who unlike Wells Fargo as once reported - presumably as they were unsuccessful in their search for a U.S. investor), managed to take a larger position as part of the convertible note deal which I believe ended up going to European and Asian investors.

BoA, at the same time, we’re heavily bullish on affirm while it ran to ATH with the market, meanwhile zip continued to crash, probably propelled further by the twisto and spotti payments and a looming cap raise risk - which did end up happening.

It didn’t take a genius to calculate the looming market correction and macro risks for over exposed (interest rate and credit risk) and overvalued tech and fintech. So it makes sense why no tech investors, instos or funds loaded up on Zip, particularly as their plan seemed higher risk than it’s competitors, such as buying minority stakes in India.

The value of cash.

I think Afterpay (and their professional advisors) were extremely luckily and extremely smart, even from the get go, attracting the likes of tiger and tencent to bolster its likelihood for success.

BNPL will survive as a process, but I personally see no future for it as a stand alone business, more of a bolt on to a large tech platform or similar. I am anticipating Affirm to follow same as Afterpay, with some sort of acquisition for it as a bolt on. It has the fund, insto and investors to survive and do so. Klarna, given their sheer size and their backing, will probably be one of the only ones to stand it alone

All in my own opinion, dyor