• Australian BNPL player Openpay announced plans to raise AUD 20 million (approximately USD 14 million) to execute its growth strategy in Australia and New Zealand (ANZ). The company announced an AUD 18 million (approx. USD 13 million) two-tranche private placement of 76 million new shares and an AUD 2 million (approx. USD 1 million) non-underwritten share purchase plan. Currently, Openpay has received AUD 16 million (approx. USD 11 million) via private placement from new and existing investors. 

• Openpay outlined a detailed plan for the use of funds in the ANZ market, which included 1) AUD 6 million (approx. USD 4 million) for customer and merchant acquisitions; 2) AUD 3.5 million (approx. USD 3 million) for loan book growth; 3) AUD 5.5 million (approx. USD 4 million) for fees, working capital, and facility repayments; and 4) AUD 5.3 million (approx. USD 4 million) for platform and technology enhancements.

<ul><li> Analyst QuickTake : The capital raise reiterates Openpay’s strategy to achieve profitability in the ANZ market within 15 months. Openpay recently reported its Q3 FY2022 financial update with the ANZ operation accounting for the majority (~91%) of total transaction volume, growing 54% YoY. The company also reported an improvement in asset quality.</ul>