By John Reynolds on Wednesday 29 July 2020
The debt facility has been provided b Victory Park Capital and comes amid plans for Laybuy to re-launch its IPO.
Payments platform Laybuy has secured an $80m (£62m) debt facility, which will be used to fund the UK arm of New Zealand’s largest buy now, pay later service.
The funding has been provided by Victory Park Capital, the asset management firm, and comes amid Laybuy’s plans to re-launch its IPO after it delayed its listing plans earlier this year when coronavirus hit.
Laybuy did not disclose details of how the funding would bolster its position in the UK, where last year it struck a retail partnership with a fashion brand run by the model and TV presenter Alexa Chung.
Last month, Laybuy scooped up prominent online retailers PrettyLittleThing and Hype, joining Australian credit rival Clearpay at the checkout of both in the UK.
Laybuy claims its UK retail partners have seen order values rise by 60 per cent since switching to its service, with Laybuy carrying the credit risk of the six equal weekly payment splitting it offers.
“Laybuy has grown exponentially since we launched three years ago and we would not be able to continue to scale without our investors’ support and confidence in our vision,” said Gary Rohloff, co-founder and CEO of Laybuy.
“In addition to increasing our customer base in our established geographies and sectors, our expansion in the UK is a critical component of our growth strategy and VPC’s backing will enable us to strengthen our position in the market.”
“Buy now, pay later services have seen incredible rates of adoption globally. With the accelerated adoption of digital commerce, Laybuy is well-positioned to capture future growth opportunities,” said Jason Brown, partner at VPC.
“We look forward to partnering with the strong management team and seeing the platform become a regular part of the shopping experience.”
Laybuy was initially looking to raise $45m (£35m) for its IPO on the Australian Stock Exchange but according to reports, it is now looking to raise up to $60m (£60m).
In the 12 months to the end of June 30, Laybuy had over 470,000 active customers on its platform and more than 5,600 active merchants.