DivideBuy secures £300m investment as BNPL race heats up
Davidson Kempner Capital Management has agreed a new £300 million lending facility with buy now, pay later venture DivideBuy and will also acquire a minority equity stake in the company.
Along with Scalapay’s recent mega Series A funding round, this underscores just how hot the BNPL market is right now.
UK-based DivideBuy, which was founded in 2014, has partnerships with more than 500 retailers, including Cloud Nine and Simba Sleep.
It says it will use the funding to “work with retailer partners to increase conversion rates at a time of immense opportunity for e-commerce”.
Rob Flowers, Founder and CEO, DivideBuy, comments: “We have one goal - to make buy now pay later transactions easy and accessible to retailers and customers.”
“The sheer scale of this investment underlines the strength of DivideBuy’s business model, and how we’re revolutionising the PoS finance sector by owning the full lending journey with assistive technology, automated soft credit checks and transparent lending with no hidden fees.”
He adds: “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.”
“We’re thrilled to embark on the next stage of our expansion and achieve our ambitious growth plans”
