DivideBuy, has secured a £300 million ($414.55 million) lending facility as it continues its growth trajectory.
The funding from global investment management firm, Davidson Kempner Capital Management which also includes a minority equity investment, will be instrumental in driving DivideBuy’s charge as a player in the point-of-sale market and further bolster the disruptive fintech’s C-suite, platform investment and retailer network, both in the UK and internationally.
This follows an already successful 12 months for the Newcastle-under-Lyme business, which was ranked first place on Deloitte’s UK Technology Fast 50 2020 list and the only business outside London to break into the top 10 on the list, after reporting an average three-year growth rate of 20,733% to the year 2019/2020.
The interest free credit POS finance market, driven by agile technologies, like DivideBuy’s, was worth nearly £10 billion in 2020, and will be worth £27 billion by 2024. DivideBuy, founded in 2014, has since carved an impressive niche in the sector by adopting a customer-centric solution.
The additional firepower and funding flexibility enables DivideBuy to maintain its high levels of growth and keep up with the demand it is experiencing from retailers across many retail verticals. This, coupled with the evolution of DivideBuy’s business model towards a technology-centric offering, leveraging its broad platform capabilities, rich lending data and market leading underwriting engine, positions DivideBuy to emerge as a market leader in its chosen areas of focus.
“DivideBuy has one goal – to make buy now pay later transactions easy and accessible to retailers and customers,” Rob Flowers, founder and CEO of DivideBuy, said. “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.”
“With the backing of Davidson Kempner, we have set ourselves the ambitious task of growing exponentially within the interest free market, while being true to our original aim of creating greater value for retailers everywhere and enhancing the entire buying, or indeed, renting, experience for customers by creating intuitive, user-driven platforms,” Flowers said.
