Sezzle Inc., a Buy Now, Pay Later (BNPL) company, has seen its stock skyrocket by 2,015% in the past year, largely due to reported revenue growth of 71% year-over-year and a strong market presence. However, beneath this surface lies a troubling reality. The company is borrowing at exorbitant interest rates to fund risky loans, primarily targeting high-risk consumers who lack access to traditional credit. Despite a facade of profitability, insiders are cashing out, with the CEO pledging 30% of the company’s shares for a margin loan and insiders selling approximately $71 million worth of stock. Sezzle has also lost over half its active merchants since 2021 and is facing a decline in active customers. Complaints about the company have surged, with many users alleging deceptive practices. As competitors like Affirm and Klarna thrive, Sezzle's reliance on risky loans and questionable business practices raises serious concerns about its long-term viability.
Read the full article here.