Laybuy completes A$35m ($27.1m) placement from new and existing institutional investors to accelerate growth in the UK.
The capital raise consists of a two-tranche placement to raise A$35m. A share purchase plan to existing eligible shareholders in Australia and New Zealand will raise up to A$5m.
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At the same time, BNPL provider Laybuy is entering strategic partnerships with Rakuten, AWIN and Sovrn. This will provide access to more than 5,000 merchants in the UK including ASOS, Nike, Marks & Spencer, Amazon and eBay.
These partnerships will enable customers to use Laybuy’s “Tap to Pay” digital card with these merchants. In addition, it allows them to pay with Laybuy both online and in-store.
Key relationships have already been established with leading retailers through affiliate networks. This bolsters the launch of the product and supports significant increases in gross merchandise value capabilities and customer satisfaction.
Laybuy Managing Director Gary Rohloff says Laybuy has already experienced strong growth in the UK. The new funding will be used to accelerate this by allowing further investment in technology, marketing and people.
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By GlobalDataLaybuy UK: 504% growth
“The opportunity in the UK market should not be underestimated. The UK has a retail market approximately 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 a market where BNPL is still in early stages of adoption,” says Rohloff.
UK consumers spent more than £151m through Laybuy in the past year, up 504% on prior year.
“This capital raise is an important step for Laybuy. It enables 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.”
Launched in 2017, Laybuy partners with over 9,000 retail merchants. Laybuy is available in New Zealand, Australia, the UK and the US. Laybuy’s share price is down 53% year to date at A$0.61 having peaked at A$1.47 as recently as February.
