Humm says it’s carving its own successful niches that other BNPL stocks won’t touch
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BNPL company Humm (ASX:HUM) may not be the biggest company in the space but says it’s reaching areas other companies won’t touch.
The company says it is the dominant player in the “health and wellbeing sector”.
This morning it told shareholders it hit $120 million on an annualised basis in this vertical – a metric up 38 per cent in FY21.
It claims to cover 25 per cent of dental chairs in Australia and over 50 per cent of enterprise technology.
Humm is one of the few BNPL stocks to have not made substantial gains. While it has doubled since the equity markets bottomed out on March 23 last year, it is down over 30 per cent in the last two years.
Many BNPL stocks were sold off during the market crash due to fears about a spike in bad debts and this actually happened to Humm (then known as FlexiGroup) – its profit fell by 65 cent.
But the company has attempted to stand out by entering these areas.
From a product perspective it claims to finance larger transactions with longer instalment plans (of up to five years) and transactions up to $30,000.
Humm also says its success has given it inspiration to expand into other areas.
“We believe that BNPL should be more than just a budgeting tool for quick retail purchases in fashion or lifestyle,” said CEO Rebecca James.
“The strong appetite for Humm’s flexible payment terms in these segments gives us great confidence to continue expanding into other target health categories that currently have low penetration of BNPL solutions, including mobility and skincare specialists.”
Shares saw a modest 1 per cent rise on a day most of the ASX tech sector dropped following a 2 per cent fall in the NASDAQ overnight.