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The Pleo app pictured on a smartphone next to one of the fintech firm’s corporate cards.

Pleo

Danish fintech firm Pleo has appointed a new chief financial officer, the company told CNBC exclusively, beefing up its executive team — a sign the company is readying itself for an eventual initial public offering.

The company hired Soren Westh Lonning, a financial services executive with more than 20 years at companies such as Danish bioscience firm Chr Hansen, hearing aid company WS Audiology, and Danish Endurance, a sports and outdoor clothing startup.

Most notably, Lonning had experience as CFO at Danish food enzyme maker Chr Hansen. Chr Hansen, which is listed on the Danish stock exchange, is one of Denmark’s most valuable publicly listed firms, with a market cap of more than $10 billion.

The European Union recently approved a $22 billion merger between Chr Hansen and competitor Novozymes.

Lonning told CNBC his biggest priorities for the firm when taking over as CFO will be pushing the company toward profitability and maturity; assessing how to continue growing the business despite the difficult macroeconomic environment; and pushing for the sound use of data to make better decisions as a business.

“There’s many companies similar to Pleo who are going through … balancing growth and efficiency or profitability in the environment that we operating in right now,” Lonning said.

“Obviously, we want to continue to to grow and grow fast, but the environment also changed. That’s a dilemma for companies, but even more so for the lifestyle of Pleo and tech companies.”

“So I think I can contribute in that direction, making sure we get as good as possible resource allocation across the company in terms of, you know, finding, finding the pockets where we get most bang for the buck in investing.”

Symbolic move

While Pleo says it is not in a rush to go public, appointing a new CFO is a symbolic move that indicates a company is beefing up its accounting and compliance teams and systems in preparation of an eventual stock market listing.

Jeppe Rindom, Pleo’s CEO, told CNBC the firm is “continuously evaluating various options to fuel expansion that best serve our customers.” An IPO, he said, is an “important consideration,” but “no definitive plans have been set in motion.”

“Part of the responsible decision-making that’s guided us to where we are now is an awareness of how market conditions impact public tech companies and understanding if a decision like this would be in the best interest of Pleo and our stakeholders,” Rindom said.

“Adding Søren to our team is about bolstering our financial strategies and comes at a time of high growth for Pleo driven by market expansion and investments to win mid-market customers,” he added.

However, Rindom added that the stage of maturity Pleo has reached as a business means that it’s “only prudent” to start thinking about the question of an eventual IPO, and suggested the firm wants to be ready for such an event by 2025.

“If you look at the markets today, it’s hard to be optimistic because there’s been IPOs this year and, quite honestly, they haven’t been performing super well,” he said. “So we don’t see ourselves go to market in this context.”

“But we are thoughtful, and we think we need to be ready for eventually, in order to be ready in, let’s say, two years, there are certain things you need to think of already now. And so we’re starting to adapt to that mindset of it.”

Hiring a CFO like Lonning, Rindom said, provides Pleo with enough “optionality” for an IPO, adding that Pleo is upgrading its processes around accounting, risk and compliance in order to “mature in a way that also resonates with an IPO eventually, should that be needed.”

Lucrative path

Pleo has recently made early moves into the world of credit. The company recently launched overdrafts for customers, as part of a larger product revamp earlier this year. The company said it wants to offer more credit products in the future.

Pleo has built a business around a product that financial executives — from CFOs to senior accountants — can use to get visibility over their cash flows and make better decisions about how to manage expenses.

Lending is viewed as more lucrative path for financial firms than payment fees since they can earn interest from cash lent out to customers — especially now when interest rates are higher.

Founded in Copenhagen in 2015, Pleo offers a single platform attached to a company-branded card that lets companies track their spending as well as file and organize their expenses.

The firm, which was last privately valued at $4.7 billion, competes with the likes of SAP’s Concur, as well as startups including U.S. firm Brex, U.K.-based Soldo, and France’s Spendesk.

The firm has raised more than $434 million in funding to date, and is backed by the likes of Coatue, Bain Capital Ventures, Thrive Capital, Creandum, and Seedcamp.

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Amazon was questioned by House China committee over ‘dangerous and unwise’ TikTok partnership

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Amazon was questioned by House China committee over 'dangerous and unwise' TikTok partnership

Amazon logo on a brick building exterior, San Francisco, California, August 20, 2024.

Smith Collection | Gado | Archive Photos | Getty Images

Amazon representatives met with the House China committee in recent months to discuss lawmaker concerns over the company’s partnership with TikTok, CNBC confirmed.

A spokesperson for the House Select Committee on the Chinese Communist Party confirmed the meeting, which centered on a shopping deal between Amazon and TikTok announced in August. The agreement allows users of TikTok, owned by China’s ByteDance, to link their account with Amazon and make purchases from the site without leaving TikTok.

“The Select Committee conveyed to Amazon that it is dangerous and unwise for Amazon to partner with TikTok given the grave national security threat the app poses,” the spokesperson said. The parties met in September, according to Bloomberg, which first reported the news.

Representatives from Amazon and TikTok did not immediately respond to CNBC’s request for comment.

TikTok’s future viability in the U.S. is uncertain. In April, President Joe Biden signed a law that requires ByteDance to sell TikTok by Jan. 19. If TikTok fails to cut ties with its parent company, app stores and internet hosting services would be prohibited from offering the app.

President-elect Donald Trump could rescue TikTok from a potential U.S. ban. He promised on the campaign trail that he would “save” TikTok, and said in a March interview with CNBC’s “Squawk Box” that “there’s a lot of good and there’s a lot of bad” with the app.

In his first administration, Trump had tried to implement a TikTok ban. He changed his stance around the time he met with billionaire Jeff Yass. The Republican megadonor’s trading firm, Susquehanna International Group, owns a 15% stake in ByteDance, while Yass has a 7% stake in the company, NBC and CNBC reported in March.

— CNBC’s Jonathan Vanian contributed to this report.

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Amazon launches fixed pricing for treatment of conditions such as hair loss. Hims & Hers stock drops 15%

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Amazon launches fixed pricing for treatment of conditions such as hair loss. Hims & Hers stock drops 15%

A worker delivers Amazon packages in San Francisco on Oct. 24, 2024.

David Paul Morris | Bloomberg | Getty Images

Amazon on Thursday announced Prime members can access new fixed pricing for treatment of conditions like erectile dysfunction and men’s hair loss, its latest effort to compete with other direct-to-consumer marketplaces such as Hims & Hers Health and Ro.

Shares of Hims & Hers fell as much as 17% on Thursday, on pace for its worst day.

Amazon said in a blog post that Prime members can see the cost of a telehealth visit and their desired treatment before they decide to proceed with care for five common issues. Patients can access treatment for anti-aging skin care starting at $10 a month; motion sickness for $2 per use; erectile dysfunction at $19 a month; eyelash growth at $43 a month, and men’s hair loss for $16 a month by using Amazon’s savings benefit Prime Rx at checkout.

Amazon acquired primary care provider One Medical for roughly $3.9 billion in July 2022, and Thursday’s announcement builds on its existing pay-per-visit telehealth offering. Video visits through the service cost $49, and messaging visits cost $29 where available. Users can get treatment for more than 30 common conditions, including sinus infection and pink eye.

Medications filled through Amazon Pharmacy are eligible for discounted pricing and will be delivered to patients’ doors in standard Amazon packaging. Prime members will pay for the consultation and medication, but there are no additional fees, the blog post said.

Amazon has been trying to break into the lucrative health-care sector for years. The company launched its own online pharmacy in 2020 following its acquisition of PillPack in 2018. Amazon introduced, and later shuttered, a telehealth service called Amazon Care, as well as a line of health and wellness devices.

The company has also discontinued a secretive effort to develop an at-home fertility tracker, CNBC reported Wednesday.

— CNBC’s Annie Palmer contributed to this report.

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WikiLeaks whistleblower Chelsea Manning says censorship is still ‘a dominant threat’

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WikiLeaks whistleblower Chelsea Manning says censorship is still 'a dominant threat'

Chelsea Manning: Censorship still a dominant threat

Former U.S. Army intelligence analyst Chelsea Manning says censorship is still “a dominant threat,” advocating for a more decentralized internet to help better protect individuals online.

Her comments come amid ongoing tension linked to online safety rules, with some tech executives recently seeking to push back over content moderation concerns.

Speaking to CNBC’s Karen Tso at the Web Summit tech conference in Lisbon, Portugal, on Wednesday, Manning said that one way to ensure online privacy could be “decentralized identification,” which gives individuals the ability to control their own data.

“Censorship is a dominant threat. I think that it is a question of who’s doing the censoring, and what the purpose is — and also censorship in the 21st century is more about whether or not you’re boosted through like an algorithm, and how the fine-tuning of that seems to work,” Manning said.

“I think that social media and the monopolies of social media have sort of gotten us used to the fact that certain things that drive engagement will be attractive,” she added.

“One of the ways that we can sort of countervail that is to go back to the more decentralized and distribute the internet of the early ’90s, but make that available to more people.”

Nym Technologies Chief Security Officer Chelsea Manning at a press conference held with Nym Technologies CEO Harry Halpin in the Media Village to present NymVPN during the second day of Web Summit on November 13, 2024 in Lisbon, Portugal. 

Horacio Villalobos | Getty Images News | Getty Images

Asked how tech companies could make money in such a scenario, Manning said there would have to be “a better social contract” put in place to determine how information is shared and accessed.

“One of the things about distributed or decentralized identification is that through encryption you’re able to sort of check the box yourself, instead of having to depend on the company to provide you with a check box or an accept here, you’re making that decision from a technical perspective,” Manning said.

‘No longer secrecy versus transparency’

Manning, who works as a security consultant at Nym Technologies, a company that specializes in online privacy and security, was convicted of espionage and other charges at a court-martial in 2013 for leaking a trove of secret military files to online media publisher WikiLeaks.

She was sentenced to 35 years in prison, but was later released in 2017, when former U.S. President Barack Obama commuted her sentence.

Asked to what extent the environment has changed for whistleblowers today, Manning said, “We’re at an interesting time because information is everywhere. We have more information than ever.”

She added, “Countries and governments no longer seem to invest the same amount of time and effort in hiding information and keeping secrets. What countries seem to be doing now is they seem to be spending more time and energy spreading misinformation and disinformation.”

Manning said the challenge for whistleblowers now is to sort through the information to understand what is verifiable and authentic.

“It’s no longer secrecy versus transparency,” she added.

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