Interest-free payment plan provider Openpay will accelerate its growth plans having successfully completed a $10 million equity fund raising round.
The raising has come from a group of investors including Investec, SL Investments Group and the Meydan Group, the latter having supported Openpay since its inception.
As Australian consumers now get used to paying for a portion of their purchase and being able to take it home that day, paying it off like a lay-by over several months, the number of Openpay users is growing dramatically.
Openpay is now available at 4,000 merchants around the country with 200,000 consumer payment plans undertaken, of which 25% are repeat purchasers showing they have a growing appreciation of the new payment method.
Avi Schechter – Chairman, Openpay
Openpay Chairman Avi Schechter said the investment is a clear validation of Openpay’s leading role in the increasing “buy now pay later” sector, in particular Openpay’s:
The equity raised from the investors will be used to accelerate the Company’s roll-out and expansion and to allow it to deliver into the increasing demand from consumers and merchants for Openpay’s unique payment plan technology.
Mr Schechter also announced the appointment of two new board members – David Phillips, Head of Investec Emerging Companies, and Darron Kupshik, Retail Director, SL Investments Group.
David Phillips said: “We’re really excited to become a shareholder in Openpay, and in particular the quality of the Openpay team, the product as well as the quality of the expanded share register. We are a strong believer in the sector Openpay is operating in and the ability for it to become a meaningful, market leading player.”
Darron Kupshik said: “The retail industry is being revolutionised with the continual introduction of technologies that impact both consumers and merchants. I’m thrilled to be joining Openpay at this time; it’s crucial for players in the retail sector to adopt new technologies as they unfold.”
Mr Schechter added: “Openpay is at a very exciting point in its growth trajectory. Over the past four years we have focused on developing our unique technology. Openpay is now poised for rapid growth in Australia’s $300 billion retail industry. The $10 million equity raising enables us to accelerate our growth plans across a range of industries where increasingly both consumers and merchants are using the Openpay payment plan technology.”
Openpay previously considered an IPO, but has decided to continue growth as a private company.