FinTech: Zip Acquires BNPL Providers In Europe And UAE

Zip is reinforcing its position in the global BNPL market.

Australian fintech Zip (ASX: Z1P) has bought up the entire remaining capital in a Buy-Now-Pay-Later (BNPL) entity each in Europe and the UAE. Zip will pay $140 million for the balance shares in Twisto, which operates in Central Europe, and $21 million for the shares it does not own in Spotii, a BNPL leader in UAE. (BusinessWire)

Zip said the transactions represented strategic moves designed to mesh with its expansion plans and a rapidly accelerating global BNPL opportunity.

Zip has been encouraged by the success of its previous acquisition of Quadpay, where the annual volume of transactions jumped 200% after the deal.

Rationale: Twisto/Europe

  • Twisto’s license can be passported to all 27 member states of the EU
  • The EU is the world’s second-largest eCommerce market with a $1.1 trillion annual volume
  • Advanced product offering lineup
  • Annual run-rate of $12 million revenue and $230 million TTV
  • Over a million customers have already transacted on the platform
  • 14,000 merchants
  • Scalable technology and a unique omnichannel credit platform, giving customers full control and freedom to pay over short and longer-term installments.

Zip’s acquisition rationale: Spotii/UAE

  • TTV has grown at an average of 90%+ month-on-month since its inception in 2020
  • The Middle East is one of the fastest-growing eCommerce regions globally, with online spend increasing by 25% annually
  • A large untapped opportunity to bring BNPL to emerging markets where cash on delivery remains a significant merchant challenge
  • 650 merchants already integrated into the platform, including flagship regional brands such as Jashanmal and Danube Home
  • Over 40,000 customers
  • Spotii’s proprietary risk algorithm has allowed the company to grow rapidly while maintaining low loss rates
  • Existing working relationship after Zip made an initial investment in December 2020

Related Story:  Macy’s Offers Klarna’s “Pay In Four” BNPL Payment Option

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