Buy Now Pay Later Provider DivideBuy Secures £300million Investment



Purchase now pay later (BNPL) supplier, DivideBuy, has secured a £300 million lending facility because it continues its stellar progress trajectory.

The funding from international funding administration agency, Davidson Kempner Capital Administration LP (“Davidson Kempner”), which additionally features a minority fairness funding, can be instrumental in driving DivideBuy’s cost as a participant within the point-of-sale market and additional bolster the disruptive fintech’s C-suite, platform funding and retailer community, each within the UK and internationally.

This follows an already profitable 12 months for the Newcastle-under-Lyme enterprise, which was ranked first place on Deloitte’s UK Know-how Quick 50 2020 listing and the one enterprise exterior London to interrupt into the highest 10 on the listing, after reporting a median three-year progress fee of 20,733% to the 12 months 2019/2020.

The interest-free credit score POS finance market, pushed by agile applied sciences, like DivideBuy’s, was price practically £10 billion in 2020, and can be price £27 billion by 2024.DivideBuy, based in 2014, has since carved a formidable area of interest within the sector by adopting a customer-centric answer.

With 500 retailers, together with Cloud 9 and Simba Sleep, already utilizing DivideBuy’s expertise, the corporate achieved a milestone £150 million in Gross Merchandise Worth (GMV) earlier within the 12 months, and is on monitor to hit £175 million by the top of 2021.

DivideBuy has additionally not too long ago introduced a brand-new partnership with re-commerce specialists, musicMagpie, making a model new rental platform for the retail big. The proposition marks one other space of progress for the enterprise because it continues to fulfill rising demand from tech-savvy customers and stays forward of market opponents.


The extra firepower and funding flexibility allows DivideBuy to take care of its excessive ranges of progress and sustain with the demand it’s experiencing from retailers throughout many retail verticals. This, coupled with the evolution of DivideBuy’s enterprise mannequin in the direction of a technology-centric providing, leveraging its broad platform capabilities, wealthy lending knowledge and market-leading underwriting engine, positions DivideBuy to emerge as a market chief in its chosen areas of focus.

Rob Flowers, Founder and CEO of DivideBuy, feedback: “DivideBuy has one objective – to make purchase now pay later transactions simple and accessible to retailers and clients. The sheer scale of this funding underlines the power of DivideBuy’s enterprise mannequin, and the way we’re revolutionising the POS finance sector by proudly owning the complete lending journey with assistive expertise, automated mushy credit score checks and clear lending with no hidden charges.

“The flexibleness of our expertise treats every buyer as a person, and likewise provides retailers revenue-boosting strengths similar to larger checkout conversions and better basket sizes. With this backing from Davidson Kempner, we will now make purchase now pay later transactions obtainable to much more retailers, and lengthen the alternate cost methodology to many extra customers who need higher cost selection on the POS. We’re thrilled to embark on the following stage of our enlargement and obtain our bold progress plans”

Credit score Amenities

Not like different POS finance answer suppliers, DivideBuy presents each the expertise platform and the credit score facility to the retailer. By reducing out conventional credit score suppliers, DivideBuy allows retailers to decrease their credit score threat and speed up buyer onboarding with market-leading utility approval charges.

After switching to DivideBuy from opponents, retailers have skilled vastly improved conversion charges, elevated basket worth, decreased basket abandonment and sometimes see a rise of as much as 70% on approvals and conversions, which helps to foster buyer loyalty.

Not like different POS finance suppliers which supply instalment phrases as much as three months, DivideBuy allows clients to have instalment phrases of as much as 12 months, which helps customers buy larger-value objects with reasonably priced, interest-free instalments, and helps retailers elevate common basket values.

Flowers provides: “The partnerships we’ve secured with main companies like musicMagpie demonstrates how a lot our answer resonates with customers in search of extra versatile and reasonably priced methods to pay.

“With the backing of Davidson Kempner, we’ve set ourselves the bold process of rising exponentially inside the interest-free market, whereas being true to our authentic purpose of making higher worth for retailers all over the place and enhancing your entire shopping for, or certainly, renting, expertise for patrons by creating intuitive, user-driven platforms.”

  • Polly Jean Harrison

    Polly is a journalist, content material creator and normal opinion holder from North Wales. She has written for a variety of publications, normally hovering across the matters of fintech, tech, life-style and physique positivity.

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