Wise and Klarna drag down Chrysalis NAV by 5.6%

Listed fintech investor Chrysalis reported a decline in its net asset value (NAV) last quarter, with the valuations of Klarna and Wise partially to blame.

Chrysalis yesterday said its NAV had fallen by 5.6 per cent in the three months to 31 December, falling to 237.86p per share, with its own shares falling on the news yesterday by around 4.5 per cent to trade at around 174p.

The investor blamed a number of reasons for its NAV falling, including Wise’s share price, which tumbled 30 per cent during the quarter, and a drop in the comparative valuations of Klarna’s rivals.

Australian buy now, pay later leader Affirm saw its share price fall by 14 per cent during the quarter.

There were some bright spots of outperformance among its portfolio as well, however. Starling Bank showed “very robust” growth in deposits, the comparative valuations of its rivals performed well, and the increasing base rates give Chrysalis optimism over “likely profit upgrades” for the neobanking sector.

German insurtech Wefox also “exhibited exceptional growth during 2021”.

Klarna remains the single largest investee company in the Chrysalis portfolio, accounting for 23.8 per cent, with Starling closely following at 18.5 per cent.

All in all, Chrysalis says its portfolio’s growth in certain areas has “offset any valuation compression” in others, largely those exposed to volatile stock market movements.

“Valuations of growth companies in global stock markets came under pressure over the quarter,” wrote Chrysalis. 

“As investors became increasingly concerned over the outlook for inflation and the likely quantum of interest rate rises that may be deemed necessary by Central Banks to control price rises.”