Buy Now, Pay Later Provider DivideBuy has entered into a £ 300million funding deal with a global investment management company.
Newcastle-under-Lyme-based fintech says funding – from Davidson Kempner Capital Management LP – will play an “instrumental” role in its future growth and allow it to expand its network to 500 retailers, both in the UK United and internationally.
The increase in cash will also help the company meet its target of reaching £ 175million GMV (gross value of goods) by the end of 2021.
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Rob Flowers, Founder and CEO of DivideBuy, said: “DivideBuy has one goal: to make buy-now and pay-out transactions easy and accessible to retailers and customers.
“The scale of this investment underscores the strength of DivideBuy’s business model and how we are revolutionizing the point-of-sale (POS) financial industry by supporting the entire lending journey with assistive technology, Automated credit checks and transparent loans with no hidden fees.
“The flexibility of our technology treats every customer as an individual and also gives retailers strengths to increase their revenue, such as higher checkout conversions and larger basket sizes.
“With this support from Davidson Kempner, we can now make Buy Now Pay Later transactions available to even more retailers and extend the alternative payment method to more consumers who want more choice of point payment. of sale.
“We are delighted to be embarking on the next stage of our expansion and delivering on our ambitious growth plans. “
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Founded in 2014, DivideBuy provides Interest-Free Credit (IFC) solutions to more than 500 business partners, including Cloud Nine and Simba Sleep, allowing customers to share the cost of their purchases, interest-free.
Just two years ago, DivideBuy secured over £ 60million in equity and debt financing investments which have been used to develop its pioneering technology and provide leverage to accelerate its lending.
The latest investment follows an already successful 12 months for the company, which ranked first on Deloitte UK Technology Fast 50 2020 list after reporting a three-year average growth rate of 20.7% through to year 2019/20.
It also comes after the announcement of a brand new partnership with musicMagpie to create a new rental platform for the retail giant.
Mr. Flowers added, “The partnerships we have entered into with leading companies like musicMagpie demonstrate how our solution resonates with consumers looking for more flexible and affordable payment options.
“With the support of Davidson Kempner, we have set ourselves the ambitious task of growing exponentially within the uninspiring marketplace, while staying true to our original goal of creating greater value for retailers around the world and improve the entire buying and even rental experience. for customers by creating intuitive, user-centric platforms. “