Buy now, pay later firm DivideBuy raises £300m lending facility
DivideBuy says it is on track to hit c£175m in Gross Merchandise Value (GMV) by the end of 2021.
Buy now, pay later provider, DivideBuy, has secured a £300 million lending facility.
The cash comes from Davidson Kempner Capital Management, a US-based investment manager, and also includes a minority equity investment.
DivideBuy, which was was founded in 2014 and is based in Newcastle-under-Lyme business, offers interest free credit point of sale finance. It says it now works with 500 retailers, including Cloud Nine and Simba Sleep and clocked £150m in Gross Merchandise Value (GMV) earlier in the year, and is on track to hit £175m by the end of 2021.
Rob Flowers, Founder and CEO of DivideBuy, says DivideBuy’s goal is to make buy now pay later transactions easy and accessible to retailers and customers.
“The flexibility of our technology treats each customer as an individual, and also gives retailers revenue-boosting strengths such as higher checkout conversions and higher basket sizes. With this backing from Davidson Kempner, we can now make buy now pay later transactions available to even more retailers, and extend the alternate payment method to many more consumers who want greater payment choice at the POS.”
Just two years ago DivideBuy secured over £60 million of equity investment and debt financing from private equity investors, Souter Investments and Jon Moulton’s private investment vehicle, to which Perscitus LLP acts as consultant, together with two UK banks.
This was used to develop its pioneering technology and provide leverage to accelerate its lending.
DivideBuyoffers both the technology platform and the credit facility to the retailer and enables customers to have instalment terms of up to 12 months.