Fintech Ovanti raises $6m for US expansion plans

Ovanti raises $6m after initial $5m placement oversubscribed
Company plans to launch BNPL offering in the US
OVT to list on US exchange like peers Sezzle and Afterpay

Special Report: Ovanti has received firm commitments from professional and sophisticated investors for a $6m placement at 2c per share to fund the expansion of its US team.

The move comes as the company looks to launch its buy-now-pay-later (BNPL) offering in the US and eyes a listing on a US exchange, ideally the tech-focused Nasdaq.

Back in October, Ovanti (ASX:OVT) appointed former Zip Co US CFO Simon Keast as its new CEO with a mandate to launch its BNPL offering in the US.

The company is following in the footsteps of dual listed BNPL player Afterpay, and former ASX-listed BNPL credit provider Sezzle which ceased trading and delisted from the ASX after moving to the Nasdaq.

Notably, Sezzle’s shares (NASDAQ:SEZL) are up 590% over the past six months, which could bode well for the company to follow a similar path.

“We note the path that Sezzle, having previously been ASX listed, has taken to realise maximum value for shareholders by moving their listing to the Nasdaq,” Keast said back in November.

As part of its plans, the company has also appointed EAS Advisors as its US capital market advisory firm to accelerate growth plans in the US BNPL market, including exploring a suitable US exchange for a listing of OVT’s securities.

“As part of EAS’ engagement, the scope of which is wide ranging, they will consider the appropriateness of Ovanti at the appropriate time either seeking to dual-list or follow the trajectory of Sezzle,” Keast said at the time.

$6m cap raise to cater for demand

Originally the company wanted to raise $5m but received an excess of bids so tagged another $1m on to cater for demand.

OVT plans to use the funds towards the expansion of the its US team; legal, licensing and compliance costs, marketing and merchant acquisition, along with technology and platform development.

In October, Ovanti chairman David Halliday said the company sees a firm future in BNPL in the US.

“We are excited to re-launch our BNPL offering with entry into the US market with such deep potential to win market share in various segments of the US market presently under-serviced by the large incumbents,” he said.

This article was developed in collaboration with Ovanti, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.