UK-based buy now pay later (BNPL) provider DivideBuy has secured a £300m lending facility from Davidson Kempner Capital Management to boost its growth trajectory both in the UK and internationally.

The funding, which also includes a minority equity investment in the firm, will help DivideBuy expand in the point-of-sale market and further bolster its C-suite, platform investment and retailer network.

Founded in 2014, DivideBuy allows shoppers to make larger-value purchases by offering instalment terms of up to 12 months.

The firm offers a technology platform and the credit facility to retailers and enables them to minimise credit risk by excluding traditional credit suppliers.

It currently has 500 retail partners including Cloud Nine and Simba Sleep.

The new capital will allow DivideBuy meet the increasing demand from retailers across different retail verticals.

Commenting on the development, DivideBuy founder and CEO Rob Flowers said: “With this backing from Davidson Kempner, we can now make buy now pay later transactions available to even more retailers, and extend the alternate payment method to many more consumers who want greater payment choice at the POS. We’re thrilled to embark on the next stage of our expansion and achieve our ambitious growth plans.”

The latest funding comes a year after the firm secured around £60m equity investment and debt financing from Souter Investments and Jon Moulton’s private investment vehicle.

The funding was used by the firm to develop its technology and offer leverage to accelerate its lending.

Flowers adds: “The partnerships we’ve secured with leading businesses like musicMagpie demonstrates how much our solution resonates with consumers looking for more flexible and affordable ways to pay.

“With the backing of Davidson Kempner, we have set ourselves the ambitious task of growing exponentially within the interest free market, while being true to our original aim of creating greater value for retailers everywhere and enhancing the entire buying, or indeed, renting, experience for customers by creating intuitive, user-driven platforms.”

Last week, PayPal agreed to acquire Japanese buy now, pay later (BNPL) services provider Paidy for nearly JPY300bn.

The move is expected to bolster PayPal’s footprint in Japan, the third largest ecommerce market in the world.