Chrysalis Investments Ltd on Tuesday reported a net asset value fall, blaming mostly a decline in valuation of portfolio company Klarna Bank AB, a Stockholm-based payments and shopping service firm.

The investor in technology and finance startups said NAV per share at September 30 was 147.79 pence per share, down 41% from 251.96p a year prior.

Klarna’s decline was responsible for 57.66p, or 55% of Chrysalis Investments’ decline, the company explained. Comparing Klarna to other companies, it said: ‘The majority have continued to execute on their growth plans and expand, albeit some, such as Klarna, chose to moderate their pace of growth given the expected squeeze on consumers’ income.’

However, Chrysalis noted that Klarna expects to achieve a profit in the second half of 2023, following a $800 million investment round at a $6.7 billion post-money valuation by Klarna in July last year. In March 2022, Klarna reported a pretax loss of SEK6.58 billion for 2021, around $630 million, widened from SEK1.63 billion, around $160 million, in 2020.

Meanwhile, Chrysalis noted it has a ‘very limited direct exposure’ to the markets of Russia and Ukraine, with sanctions imposed on Russia having no material impact.

The company declared no dividend for its financial year, unchanged from a year ago.

‘The portfolio ended the year well-funded, with 67% of portfolio now either profitable or expected to be funded to profitability and a further 14% with a cash runway of approximately two years,’ Chrysalis said.

Looking ahead, Chair Andrew Haining said the company started financial year 2023 with ‘with confidence in its portfolio of high potential, market leading businesses. We have a robust cash position that will enable us to further support these companies.’

Chrysalis Investments shares were down 3.9% to 85.54 pence each in London on Tuesday at midday.

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