In mid-2022, Sezzle, a Minneapolis-based buy-now, pay-later fintech, faced dire straits as it struggled with dwindling funds and a collapsing acquisition deal. With investor confidence waning and competition from giants like Affirm and Klarna intensifying, CEO Charlie Youakim implemented drastic cost-cutting measures, including significant layoffs and the closure of international operations. However, cutting costs alone wasn't enough; Sezzle needed a new revenue strategy. In 2022, the company launched a subscription service targeting its most frequent users, offering benefits such as access to more retailers and flexible payment options. This move has proven successful, with subscriptions accounting for 33% of revenue by Q3 2024 and helping Sezzle achieve profitability for over two years. Despite facing criticism and scrutiny, particularly regarding its customer base and default rates, Sezzle's stock skyrocketed, reflecting renewed investor interest. As it embarks on a national marketing campaign, Sezzle aims to solidify its position in the competitive fintech landscape.
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