Super ambitious Auckland-founded 'buy now pay later' (BNPL) company Laybuy - in operation for only three years - has secured an £80 million debt facility from Chicago-based Victory Park Capital (VPC) to help fund growth in the UK.
And this comes as Laybuy is also moving ahead with an A$80 million IPO ahead of a listing on Australia's ASX. Laybuy operates in NZ, Australia and UK.
Founded in New Zealand in 2017, Laybuy opened in Australia a year later and then in 2019 it officially launched in the UK market with streetwear brand retailer Foot Asylum.
At the moment the company's major shareholders are Auckland private company investor Pioneer Capital (with just under 51%) and the business' founders husband and wife team Gary and Robyn Rohloff (just over 49%) - who have relocated to the UK to drive the business there.
Laybuy describes itself as New Zealand’s "leading buy now, pay later service", partnering with over 4,500 retail merchants across the country.
Customers shop now, receive their purchase straight away, and pay it off over six weekly payments without paying interest. There are, however late payment penalty fees.
CEO Gary Rohloff said Laybuy had "grown exponentially" in the past three years.
He said expansion in the UK was "a critical component" of the growth strategy and having the backing of Victory Park Capital "will enable us to strengthen our position in the market”.
Partner at VPC Jason Brown said buy now, pay later services had seen "incredible rates of adoption globally".
Laybuy says that for the 12-month period ending June 30, 2020, it had globally more than 5,600 active merchants (up 50% in the past year) and over 470,000 active customers (up 110%) on its platform.
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