Kiwi BNPL firm takes flight
New Zealand buy now pay later operator Lay-by has successfully raised $35 million to further its push in the UK market.
The firm raised the capital from new and existing institutional investors and high net individuals which will be used to invest further into technology marketing and staff.
The ASX-listed Laybuy said it plans to go to the market for an extra $5 million through a share purchase scheme.
Laybuy managing director Gary Rohloff said the opportunity in the UK market should not be underestimated The UK has a retail market about 2.2 times larger than the Australian market in terms of overall spending. It is also a market where a higher proportion of retail spending is online and where BNPL is still in the early stages of adoption.
“Laybuy is already widely recognised as one of the UK’s leading BNPL providers with consumers spending more than 150 million pounds through Laybuy in the past year - up 504 percent on the year before that.
“The capital raise is an important step for Laybuy enabling the company to continue its strong momentum and to capitalise on the significant growth opportunity in the UK market
“We believe this will maximise shareholder value in the longer term.
The capital raising comes as the company has forged several merchant partnerships. Striking deals with Rakuten, AWIN, and Sovrn will give users access to 5,000 merchants in the Uk including major household brands like Asos, Nike, Marks & Spencer, Amazon, and eBay.
Moreover, Laybuy said these strategic partnerships will enable customers to use its tap-and-pay digital card with these merchants. Users can then pay with Laybuy both online and inshore without further merchant integration or direct relationships.