A New Zealand BNPL pioneer that expanded to the UK and Australia, listed on the ASX, and went into administration when Klarna and Afterpay took its markets.
Evaluating only Laybuy’s profile at its peak — without knowing the outcome — the model ranked Competition as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
FOUNDING
Laybuy founded
FUNDING
PIVOT
Strategic pivot under pressure
CRISIS
SHUTDOWN
SHUTDOWN
Bankruptcy: Laybuy ceases operations
Full Analysis
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Documented cause
Laybuy raised $50M and listed on the ASX in 2020 to offer buy-now-pay-later services in New Zealand, Australia, and the UK. The company had early traction but competed in an increasingly crowded market against Klarna (which raised $4B), Afterpay (acquired by Square for $29B), and Zip. As interest rates rose and credit quality deteriorated in 2022-2023, Laybuy's loan losses mounted while funding costs increased. Unable to raise additional equity in a hostile BNPL market, Laybuy entered voluntary administration in June 2023.
Lesson
“BNPL in 2020-2022 attracted too much capital too fast, creating a winner-takes-most dynamic with Klarna, Afterpay, and Affirm. Regional players who went public before the category consolidated were trapped: not enough scale to compete on pricing, not enough funding to survive the rate cycle.”