Zebit (ASX:ZBT) has become the ASX’s latest buy now pay later (BNPL) and ecommerce stock but has dropped on debut.

The company is an online retailer with its own buy now pay later solution.

Zebit targets US consumers that are considered “credit challenged”, meaning they live from pay cheque to pay cheque and would otherwise find it difficult to access credit. This group could be up to 80 per cent of the American population.

While other credit providers put them in the “too hard” basket, Zebit’s platform has an algorithm that analyses potential customers and their likelihood of paying up.

The San Diego-headquartered company is also the latest American company to list on the Australian bourse as a result of ASX efforts to lure them Down Under.

Zebit’s IPO raised $35 million at $1.58 per share. The majority of IPOs in 2020 have seen solid debuts, including ecommerce play MyDeal (ASX:MYD) which listed last week.

But Zebit was an exception to the 2020 rule, as shares fell to $1.20 at market open – a drop of nearly 25 per cent.

Zebit (ASX:ZBT) share price chart


IPO to accelerate growth

Despite this morning’s fall, CEO Marc Schneider believes more growth is ahead for the company he founded in 2015.

“We are humbled and honoured to be part of the ASX,” he told Stockhead.

“This is clearly a milestone in Zebit’s history and a key stepping stone to support the Company’s history of impressive growth and its plan toward becoming profitable.”

Zebit’s IPO this morning was accompanied with a financial update from the company.

In the September quarter it gained another 34,000 customers taking its tally to 661,000 registered users.

Zebit also reported expansion in its business to business user acquisition channel.