Aug 25 Reuters Australian buynowpaylater BNPL firm Zip Co Ltd posted a wider annual loss on Thursday, signalling lacklustre outlook for fintech firms in the wake of soaring inflation.

BNPL operators, particularly, have seen their valuations collapse in recent times as reduced customer spending and rising interest rates have squeezed their margins and pushed the firms39; funding costs higher.

Shares of Zip ended a volatile session 2.1 lower after climbing up to 8.8 earlier in the day.

Loss from ordinary activities after income tax attributable stood at A1.11 billion 772.0 million for the year ended June 30, compared with a loss of A678.1 million last year.

The company, which had earlier said it was reviewing the goodwill against its newly acquired U.S. and European businesses, on Thursday recorded an A821.1 million impairment charge for the year.

Zip, which made several global acquisitions after a pandemicdrivem boom in BNPL businesses, had last month dumped a buyout of U.S. rival Sezzle Inc . 

1 1.4378 Australian dollars

Reporting by Himanshi Akhand in Bengaluru; Editing by Sherry JacobPhillips

Source Reuters