News Tech: Aug 25 (Reuters) – Australian buy-now-pay-later (BNPL) firm Zip Co Ltd (ZIP.AX) posted a wider annual loss on Thursday, signalling lacklustre outlook for fintech firms in the wake of soaring inflation.
Shares of Zip ended a volatile session 2.1% lower after climbing up to 8.8% earlier in the day.
BNPL operators, particularly, have seen their valuations collapse in recent times as reduced customer spending and rising interest rates have squeezed their margins and pushed the firms’ funding costs higher. read more
Loss from ordinary activities after income tax attributable stood at A$1.11 billion ($772.0 million) for the year ended June 30, compared with a loss of A$678.1 million last year.
RegisterReporting by Himanshi Akhand in Bengaluru; Editing by Sherry Jacob-Phillips
Source: Reuters Trust Principles.