Category: buy now pay later

Wisetack closes on $45M to bring ‘buy now, pay later’ to in-person services



Buy now, pay later is growing globally — with various companies expanding to, and in, different parts of the world, such as Africa, Latin America and Asia.

Here in the U.S., Affirm and Klarna are big players, and Square recently announced plans to acquire Afterpay, which also is eyeing growth here.

Traditional buy now, pay later (BNPL) gives consumers the opportunity to pay in installments at the point of sale, either online or, increasingly, in person as well. But even domestically, the ability to pay in installments is branching out beyond e-commerce and retail.

Wisetack is a startup that brings buy now, pay later to in-person services. And it just raised $45 million in a Series B funding round led by Insight Partners.

Existing backers Greylock Partners and Bain Capital Ventures also participated in the financing, bringing the company’s total raised to $64 million since its 2018 inception. The latest round comes just six and a half months after Wisetack announced it had raised $19 million across its seed and Series A rounds, which were both led by Greylock.

In a nutshell, the San Francisco-based startup helps in-person businesses offer financing to consumers. Wisetack is not the first company to do this, but what makes it different, according to co-founder and CEO Bobby Tzekin, is that it actually embeds financing options into software platforms that businesses have already built out and are using in their operations.

Its focus (Read more...)

Out of water


This post is by Om Malik from On my Om


Death Valley, CA. Photo By Om. Made with Leica SL2.

Sitting inside my concrete cocoon, mid-way between the soaring blue sky and the shaded San Francisco side street, I can see the blue waters of the San Francisco bay. It all looks and feels quite normal. The temperate morning with the occasional waft of chilly air reminds me of my good fortune to live in this beautiful city. I don’t like to think about the eventual big one.  

I have just showered. For some, success means being rich, famous, owning fancy cars, or big mansions. As long as I have lived, I have considered long, lazy showers the ultimate luxury. For me, the shower is an allegory of ambition and success. And soon, it might become a reminder of what we might be losing as a society. 

***

I grew up in Delhi before making America my home. My parents were neither rich nor poor. They were somewhere in the vast middle, which had its spectrum of success and ambition, where you sat on that spectrum defined what you had as part of your daily life. 

For most of my early life, my family didn’t have things that most take for granted — television, telephone, and even a refrigerator. Eventually, those luxuries would come into our household, some slowly, some very slowly. One of the things we couldn’t take for granted was water. Our family’s water came from a tap — and the water availability was as much an act (Read more...)

Buy now, pay later startup Kredivo doubles its debt facility from Victory Park Capital to $200M



Kredivo announced today it has secured another $100 million debt facility from Victory Park Capital (VPC). This doubles the Indonesian digital lending and credit platform’s total warehouse financing facility from VPC to $200 million. The first round was closed in July 2020.

Kredivo is operated by Singapore-based fintech FinAccel. This is the largest loan facility it has raised so far, and is VPC’s biggeast debt commitment to a fintech company outside of the United States and Europe, as well as its only investment in Southeast Asia. Kredivo will use the debt facility to help achieve its goal of serving 10 million customers in Indonesia.

Other notable startups that have received debt financing from VPC include Razor Group, factory 14, Konfio and Elevate.

Kredivo has more than three million customers and offers two main types of lending products: zero interest 30-day ‘buy now, pay later’ financing for e-commerce and offline purchases, and three-, six- and 12-month installment loans with an interest rate of 2.6% a month, or a maximum annual rate of 53.36%. Kredivo chief executive officer Akshay Garg told TechCrunch that its ‘buy now, pay later’ services are typically used for small-value online purchases, while installment loans are used to finance bigger transactions, like laptops, home renovation or medical care.

While ‘buy now, pay later’ services like Klarna, Afterpay or Affirm offer convenience to customers in the United States or Europe, in emerging markets it (Read more...)

Fintech giant Klarna raises $639M at a $45.6B valuation amid ‘massive momentum’ in the US



Just over three months after its last funding round, European fintech giant Klarna is announcing today that it has raised another $639 million at a staggering post-money valuation of $45.6 billion.

Rumors swirled in recent weeks that Klarna had raised more money at a valuation north of $40 billion. But the Swedish buy now, pay later behemoth and upstart bank declined to comment until now.

SoftBank’s Vision Fund 2 led the latest round, which also included participation from existing investors Adit Ventures, Honeycomb Asset Management and WestCap Group. The new valuation represents a 47.3% increase over Klarna’s post-money valuation of $31 billion in early March, when it raised $1 billion, and a 330% increase over its $10.6 billion valuation at the time of its $650 million raise last September. Previous backers include Sequoia Capital, SilverLake, Dragoneer and Ant Group, among others.

The latest financing cements 16-year-old Klarna’s position as the highest-valued private fintech in Europe.

In an exclusive interview with TechCrunch, Klarna CEO and founder Sebastian Siemiatkowski said the company has seen explosive growth in the U.S. and plans to use its new capital in part to continue to grow there and globally.

In particular, over the past year, the fintech has seen “massive momentum” in the country, with more than 18 million American consumers now using Klarna, he said. That’s up from 10 million at the end of last year’s third quarter, and up 118% year over year. Klarna is now live with 24 of the top (Read more...)

As buy-now-pay-later startups keep raising capital, a dive into Klarna, Afterpay and Affirm’s earnings



Venture capitalists continue to fund buy-now-pay-later (BNPL) startups, evidence of ongoing optimism regarding not only e-commerce, but the specific model for financing consumer purchases as well.

Evidence of continued investor confidence in the BNPL space cropped up several times in the second quarter. Divido, a startup that TechCrunch described as a “white-label [BNPL] platform for retail finance that integrates with e-commerce platforms,” raised $30 million. And Zilch raised $80 million for an “over-the-top” BNPL solution.


The Exchange explores startups, markets and money. 

Read it every morning on Extra Crunch or get The Exchange newsletter every Saturday.


Zilch is now worth $800 million.

There are other examples, but those will suffice to get us into the correct mindset for today’s work as we look back at data points regarding the financial performance of more mature BNPL tech companies. So, as in February when we were looking at Q4 2020 numbers, today we’re looking into the more recent performance of Klarna, Affirm and Afterpay.

Growth versus profitability

As startups scale, they focus a bit more on profitability. Super-early-stage startups aren’t often too worried about net margins, for example, as their revenues can be nascent and their costs rising as they staff up for a product launch or another similar event.

But as those same startups mature into unicorn territory, questions about their model’s profitability on a unit basis, operating cash burn and aggregate profitability will start to pop up. The Rule of 40 is a startup rubric for a reason.

And (Read more...)

As buy-now-pay-later startups keep raising capital, a dive into Klarna, Afterpay and Affirm’s earnings



Venture capitalists continue to fund buy-now-pay-later (BNPL) startups, evidence of ongoing optimism regarding not only e-commerce, but the specific model for financing consumer purchases as well.

Evidence of continued investor confidence in the BNPL space cropped up several times in the second quarter. Divido, a startup that TechCrunch described as a “white-label [BNPL] platform for retail finance that integrates with e-commerce platforms,” raised $30 million. And Zilch raised $80 million for an “over-the-top” BNPL solution.


The Exchange explores startups, markets and money. 

Read it every morning on Extra Crunch or get The Exchange newsletter every Saturday.


Zilch is now worth $800 million.

There are other examples, but those will suffice to get us into the correct mindset for today’s work as we look back at data points regarding the financial performance of more mature BNPL tech companies. So, as in February when we were looking at Q4 2020 numbers, today we’re looking into the more recent performance of Klarna, Affirm and Afterpay.

Growth versus profitability

As startups scale, they focus a bit more on profitability. Super-early-stage startups aren’t often too worried about net margins, for example, as their revenues can be nascent and their costs rising as they staff up for a product launch or another similar event.

But as those same startups mature into unicorn territory, questions about their model’s profitability on a unit basis, operating cash burn and aggregate profitability will start to pop up. The Rule of 40 is a startup rubric for a reason.

And (Read more...)

Philippines ‘buy now, pay later’ startup Plentina raises $2.2M seed round



Plentina co-founders Kevin Gabayan and Earl Valencia

Plentina co-founders Kevin Gabayan and Earl Valencia

E-wallets are rapidly gaining popularity in the Philippines, overtaking credit cards, which have a penetration rate of under 10%. Fintech startup Plentina is leveraging that trend with buy now, pay later (BNPL) installment loans that can be used and repaid through e-wallets.

The company announced today it has closed a $2.2 million seed round, co-led by former Tableau executive and ClearGraph chief executive officer Andrew Vigneault, Unpopular Ventures and DV Collective. Other participants included JG Digital Equity Ventures (JGDEV), Amino Capital, Canaan Partners Scout Fund and Ignite Impact Fund.

Its last funding was $750,000 pre-seed round raised last year from investors including Techstars, Emergent Ventures and the 500 Startups Vietnam Fund. Plentina also participated in the Techstars Western Union and Stanford’s StartX accelerator programs.

Plentina launched in the Philippines in October 2020 and has been downloaded more than 30,000 times. Its merchant partners include 7-Eleven Philippines and Smart Communications, a telecom provider with more than 70 million prepaid subscribers.  The company will use its seed round to onboard more merchant partners in the Philippines before expanding in Southeast Asia and other regions.

Plentina uses machine learning models to gauge the creditworthiness of loan applicants, drawing on founders Kevin Gabayan and Earl Valencia’s data science backgrounds. Gabayan was data science lead at Bump Technologies and then spent five years working at Google after it acquired the startup. Valencia’s experience includes (Read more...)