DivideBuy Snags $415M Growth Investment

U.K. buy now pay later (BNPL) provider DivideBuy has nailed down a 300 million pound (almost $415 million) investment that it plans to use to continue to fuel its growth, according to a press release.

“The flexibility of our technology treats each customer as an individual, and also gives retailers revenue-boosting strengths such as higher checkout conversions and higher basket sizes,” said DivideBuy Founder and CEO Rob Flowers in the release.

The capital came from global investment management firm Davidson Kempner Capital Management and a minority investor, the release stated

“With this backing from Davidson Kempner, we can now make buy now pay later transactions available to even more retailers and extend the alternate payment method to many more consumers who want greater payment choice at the [point of sale (POS)],” Flowers said, per the release.

The interest-free credit POS finance market was worth almost 10 billion pounds (more than $13.8 billion) in 2020 and will be worth 27 billion pounds (more than $37.3 billion) by 2024, according to the release.

DivideBuy also announced in the release that it has partnered with reCommerce experts musicMagpie on a rental platform for the retail giant. More than 500 retailers use the technology created by DivideBuy.

Last month, DivideBuy partnered with hair product retailer Cloud Nine Hair to give customers access to interest-free credit. DivideBuy has onboarded nearly 30 new retail partners in the first seven months of the year.

Read more: DivideBuy and Cloud Nine Hair team to Offer Customers Interest-Free Credit

PYMNTS research found more than 60% of small- to medium-sized businesses (SMBs) say customers would switch to merchants that provide BNPL options and that BNPL allows for sales that would not happen if the installment option didn’t exist.

Read more: BNPL’s Pitch to Merchants Goes Beyond Installment Plans to Deep Data

The September Buy Now, Pay Later Tracker highlighted four ways BNPL providers help their merchant partners: bringing new customers, increasing trust, providing extensive data and driving additional sales.