BNPL financial platform Divido raises $ 30 million

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based in London Divido has raised $ 30 million in venture capital under the leadership of banking giants HSBC and ING. The company offers a Buy Now, Pay Later (BNPL) platform for the retail financial sector.

In one Press releaseDivido said it will use the money to “drive international expansion while further building its market-leading platform for lenders and merchants.”

“The retail financial market is in a period of exponential growth that is projected to reach $ 2.5 trillion in the next year,” said Christer Holloman, Founder and CEO of Divido. He added that Divido “has created a global standard for banks, retailers and payment partners to seamlessly connect to offer consumers buy now and pay later”.

Divido offers a “white label platform”, which means that it is a business-to-business (B2B) product that is not offered directly to consumers. Divido was founded in 2014 and today has more than 1,000 customers and operates in 10 markets on two continents.

“There is a clear demand for retail finance worldwide, both from customers and dealers,” said Catherine Zhou, HSBC Global Head of Venture, Digital Innovation and Partnerships. “The Divido platform enables lenders to serve customers in this space with a compelling, well-managed offering.”

Divido “is a good strategic fit for ING’s consumer finance business,” said Jan Willem Nieuwenhuize, ING Ventures Managing Director. “We see Divido as an innovator at the forefront of the market.”

Divido’s latest round of funding also included the Sony Innovation Fund from IGV (Innovation Growth Ventures Co.), SBI Investment, OCS, Global Brain and DG Daiwa Ventures, as well as existing investors DN Capital, Dawn Capital, IQ Capital and Amex Ventures .

For consumers with subprime credit scores (18 percent), a thin credit file (11 percent), or no file at all (11 percent), accessing mainstream credit can be a difficult and expensive undertaking, if at all possible. This can lead to a cash flow crisis when unexpected expenses crop up.

SezzleChief Technology Officer Killian Brackey PYMNTS told PYMNTS that its BNPL offering was like “training wheels for traditional credit products” to get consumers used to paying for their purchases every two weeks and to protect against overspending.

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NEW PYMNTS DATA: CRYPTO CURRENCY PAYMENT STUDY – MAY 2021

About the course: U.S. consumers view cryptocurrency as more than just a store of value: 46 million plan to use it to make payments for everything from financial services to groceries. In the Cryptocurrency Payments Report, PYMNTS surveyed 8,008 users and non-users of cryptocurrencies in the US to investigate how they would like to use crypto for purchases, which crypto they would like to use – and how merchant adoption can affect merchant choice and consumer spending.







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