Investment firm Victory Capital Park entered a debt financing agreement of A$100 million ($71.2 million) with digital retail finance and payments company Zip Co Limited.
Zip offers point-of-sale credit and digital payment services to the retail, home, health, automotive and travel industries. This is Zip’s second transaction with Victory Park Capital after closing a A$108 million ($76.9 million) asset-backed warehouse facility with the firm in 2015.
The debt facility from Victory Park Capital will fund receivables and support the company’s recently launched Zip Business platform, which was designed to support the small business community. Zip Business technology is based on a credit decisioning platform, previously known as SpotCap, that has originated more than $200 million in credit to small businesses in Australia and New Zealand since 2015. The company recently announced a partnership with eBay Australia, where its 40,000 Australian small business merchants will have the opportunity to access working capital through Zip’s platform.
“We’re delighted to work with VPC again to support the launch of a new extension to our business,” Peter Gray, co-founder and chief operating officer of Zip, said. “This comes at a time when Australia’s small businesses are confronting the extreme challenge of COVID-19, which has created enormous pressure on cash flow and the business environment. VPC’s investment is part of our commitment to supporting the recovery and growth of the small business community in Australia and other markets where we operate.”
“It’s been a pleasure to partner with Zip as it has grown from a small fintech company to a leading player in the global payments ecosystem,” Jason Brown, partner at Victory Park Capital, said. “We look forward to continuing our partnership with Zip and seeing the success that comes with the launch of Zip Business.”
