Australian fintech and buy now, pay later innovator Payright has completed its Series D capital raise, raising a total of $12 million, bringing the company’s total capital raise to over $60 million over the last 18 months.
Led by wealth manager Escala Partners, the equity raise was oversubscribed with strong support from existing shareholders and new investors.
At a time of market challenges and uncertainty, the buy now, pay later sector has remained resilient and Payright has continued to cement its place as a meaningful player across the rapidly growing sector.
How will the funds to be used?
A large component of the funds raised will be put aside to support growth in Payright’s loan book and net proceeds will be used to boost ongoing growth initiatives and gain market share more broadly in the buy now, pay later market.
Payright has gained significant traction across the home improvement sector and will continue to strengthen its offering in the services category.
The company is also targeting bigger merchants with significant partnerships already signed including major retail partners Leading Edge Group and Homemakers Furniture as well as direct sales leader Amway and online retail powerhouse Klika and building out its consumer offering to expand its customer acquisition strategy.
Myles Redward, co-founder and joint CEO of Payright, said, “We closed our Series C fundraise around 12 months ago with the intention to do another raise in Q1 2020.
Despite a softening across the equity markets resulting from COVID-19, demand for the Series D fundraise was oversubscribed.
We are thrilled to have been able to secure the funding required to enable growth in the loan book and increase volume. The support received from our key partners and investors has been tremendous, particularly over this challenging time.”
Piers Redward, co-founder and joint CEO of Payright, said “The proceeds of this raise will support the growing merchant demand for Payright.
The March quarter saw our biggest ever increase in new merchants joining the platform and as merchant partners continue to see the significant value Payright offers to their businesses, we are well positioned to continue to support significant numbers of new merchants and accelerate their growth.”
Merchant awareness and consumer confidence in alternative payments is at an all-time high and Payright is well placed to capitalise on new merchant opportunities.
There is a clear growth in the buy now, pay later space – recent data released by illion in partnership with AlphaBeta (part of Accenture) has revealed buy now, pay later as a form of payment is being used by Australian consumers at levels higher than those seen during the Christmas period, further illustrating the desire for consumers to spread the costs of purchases over time.
Research commissioned by Payright revealed homewares/ furniture/ white goods (45%) and electronics (43%) were the most popular categories participants would consider using a buy now, pay later service for in the future.
Figures released from Payright’s database also showed home improvement as one of the top three merchant categories most popular among its Australian customer base.
Payright research has also demonstrated greater acceptance for higher price point products with buy now pay later in demand as a payment option.
The figures across the board support consumers’ preference to divide costs into smaller, more manageable installments to fit within their budgets.
While consumers are typically familiar with buy now, pay later services for fashion, appliances and electronics, Payright is also taking buy now, pay later to a new level and developing the category in higher priced items as well as the services market – a largely untapped space.
This has substantially contributed to the growth of Payright’s customer base – which has grown nearly 50% in the six months ending 31 March 2020.