Fintech: Splitit opens Australian office, raises $30m as shares edge lower
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Payments platform Splitit (ASX:SPT) has raised $30m of a whopping $40m capital raising, which they launched just four months after listing on the ASX.
The buy now, pay later (BNPL) platform announced it raised the ready from a combination of “institutional, sophisticated, professional, and experienced investors”.
Splitit allotted 37.5m shares at 80 cents per share, down from an all-time intra-day high of $2 in the wake of its February listing, but still higher than the 20c IPO issue price.
The company also reaffirmed plans to raise an additional $10m from eligible retail shareholders via a share purchase plan.
At the end of March Splitit still had $8.8m in cash, after raising $10m from investors for its January IPO.
Splitit didn’t specify how the capital would be deployed, but said it would allow the company to “meet the current excess demand for its products”, pursue its growth strategy and capitalise on opportunities as they arise.
Stockhead has contacted a company representative for comment requesting extra details around how it plans to allocate the capital.
The company also announced it has signed up five new merchants across the US, UK and Europe, spanning sectors from water purification systems, to bed mattresses and teeth-alignment suppliers.
Signing up new partners is a key part of the business strategy for BNPL platforms, which derive most of their revenue from clipping the ticket on each sale the merchant makes.
The company also said it has now opened its Australian office and appointed two local staff, a director of sales and a sales engineer.
“This is a key market for us and will serve as our base to grow the business in the Asia Pacific region,” CEO Gil Don said.
“We have a large pipeline of quality Australian merchants that have expressed interest in using our solution and we are now in a position to cater for this demand.”
EML Payments Ltd (ASX:EML) has signed an eight-year agreement with Smartgroup Corp (ASX:SIQ) to use their reloadable card product for salary packaging benefits.
The technology allows customers to have multiple benefit accounts managed on one virtual wallet. “Salary sacrifice participants no longer need to carry a number of cards, one for every benefit account,” EML said. The company has been working with Smartgroup since 2017 and currently manages around 50,000 accounts.
Shares in EML have risen from $2 to their current price of $2.47 over the past week, and RBC Capital Markets’ analyst Garry Sherriff has a price target of $3 on the stock.