<div>
  <p>
  </p>
  <ul>
    <li>
      <p>
        Australia-based Zip, a B2C and B2B BNPL provider, is moving to shut down its Zip Business Capital ANZ subsidiary, selling its loans operation to Prospa, an SME lender, for AUD 15.6 million (~USD 10.3 million).
      </p>
    </li>
    <li>
      <p>
        The company announced that it would cease SME lending activities in May of last year, after its decision to close operations in 10 markets due to poor performance in March 2023.
      </p>
    </li>
    <li>
      <p>
        Zip had acquired this business from Spotcap Australia and New Zealand in 2020 for AUD 8.8 million (~USD 6.1 million). It includes all of Zip's remaining performing Australian business loans, which amount to around AUD 18.4 million (~USD 12.1 millIon) in commercial loans to 370 small firms.
      </p>
    </li>
    <li>
      <p>
        <b>Analyst QuickTake: </b>
        Last week, Zip secured a USD 225 million debt facility from Victory Park Capital, an Australia-based private credit firm. It had earmarked the funds to finance its growing receivables business across the US.
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


<div>
  <p>
    <a href="https://company-announcements.afr.com/asx/pgl/190ea639-ba3d-11ee-83ee-ca3084c9163d.pdf">
      Press release
    </a>
  </p>
  <p>
    <a href="https://www.businessnewsaustralia.com/articles/prospa-snaps-up-zip-sme-loan-business-for--15-6m.html">
      Business News Australia
    </a>
  </p>
  <p>
  </p>
</div>


Buy Now, Pay Later

ANALYST_QUICK_TAKE

<div>
 <p>Zip, an Australian buy now pay later (BNPL) provider, is selling its Zip Business Capital ANZ subsidiary to Prospa, a small-medium enterprise (SME) lender, for about USD 10.3 million. In 2020, Zip acquired this business from Spotcap Australia and New Zealand, but decided to cease SME lending operations in May after seeing poor performance. The sale includes Zip's remaining performing Australian business loans, totaling approximately USD 12.1 million in commercial loans to 370 small firms. </p>
</div> <p><b>Analyst QuickTake: </b> Last week, Zip secured a USD 225 million debt facility from Victory Park Capital, an Australia-based private credit firm. It had earmarked the funds to finance its growing receivables business across the US.</p>

Zip sells its commercial loan business to Prospa for AUD 15.6 million

<div>
<p>Australia's Buy Now Pay Later (BNPL) provider, Zip, has raised $225 million in a debt facility from private credit firm Victory Park Capital. This new funding brings Zip's total backing to $1.1 billion. Zip intends to use the funds to expand its receivables in the United States. This marks the third time the two companies have partnered, following a $70 million facility in 2015, later extended to $130 million.</p>
</div>

Zip secures USD 225 million in debt facility to support receivables growth within US

Zip, an Australian BNPL provider, has teamed up with Primer, a global payment infrastructure provider, to improve its payment services and expand in the US market. Primer offers payment tools and infrastructure to support merchants in various payment-related services. Through this partnership, Zip will use Primer's tools to access new card acquirers and processors, fraud and communication tools, and features that reduce operational costs. This collaboration aims to accelerate Zip's growth and market share in the US market.

All Updates

Zip sells its commercial loan business to Prospa for AUD 15.6 million

Zip secures USD 225 million in debt facility to support receivables growth within US

Zip partners with Primer to accelerate product growth and market share

Zip announces Cynthia Scott as group CEO and managing director

Zip announces Q4 FY2023 earnings recording 8.4% YoY growth in transaction volumes

Zip announces proposed liability management exercise to reduce leverage

Afterpay, Zip, and Laybuy collaborate with Centrix to launch credit reporting system

Zip plans to exit its operations in 10 out of its 14 global markets

Zip reports strong improvement in revenue growth despite transaction volume moderations in Q2 FY 2023

Zip launches physical card for installment payments