BNPL fintech raises $21 million
Limepay has raised $21 million ahead of its IPO raise, bringing the fintech’s total funding to nearly $30 million since its initial seed funding was finalised in December last year.
The funds have been raised from a mix of high net worth and institutional investors.
The funds will be used to scale up Limepay’s sales, marketing and partnerships side of the business while also improving and expanding its products, management tea and working capital.
The pre-IPO funding round will also allow the business to executive on its growth plans and the flexibility to bring in additional institutional investors ahead of the planned IPO next year.
Limepay provides a white-labelled buy now, pay later platform that provides retailers greater control of the customer relationships.
“The issue with outsourced BNPL providers is that they sign up millions of merchant’s customers and take ownership of those relationships,” Limepay CEO and co-founder Tim Dwyer said at the time.
“They can then hold merchants to ransom by increasing fees and re-marketing competing products. This is an unsustainable model for many merchants.”
In announcing the $21 million raise on Tuesday, Dwyer added that the support and strong interest received from investors is testament to Limepay’s differentiated offering, which is unique in the global BNPL market.
According to Dwyer, the recent Chinese ‘Singles Day’, and subsequent Black Friday sales combined with consistent onboarding of new merchants have seen Limepay achieve quarter-on-quarter growth in excess of 250 per cent, and underlying merchant sales increase above $95 million on a seven-day annualised run-rate basis.
In fact, new funds raised comes at a good time for Limepay given its recent launch of major retail partners including EB Games and PUMA who are well positioned to grow strongly from the , increased sales on Black Friday and over Christmas.
“We currently have several new institutional investors who are still assessing the opportunity,” Dwyer added.
“However, as with all we do, we are taking a measured and strategic approach to this raising in seeking out the best possible outcome for our investors as we work towards an eventual IPO.”