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July 9, 2021updated 12 Jul 2021 5:12pm

Zip Xo plans to invest over $160m in two BNPL firms

Australia-based consumer finance fintech Zip Xo has announced its plans to invest over $160m to assume complete ownership of two BNPL (buy now, pay later) companies.

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How attractive are current investment opportunities in Europe?

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Zip Xo had previously owned minority stakes in these two BNPL firms.

As Zip Xo expands its presence in the BNPL sector globally, it will pay $140m for the remaining shares in European operator, Twisto Payments.  Furthermore, Zip will pay $21m to buy out Middle Eastern operator, Spotti.

Valued at $3.9bn, the Australian firm stated the move will help to bolster its presence in the large European market and emerging Middle Eastern market, which is considered to be one of the fastest growing global ecommerce regions.

Zip stated that it is yet to be determined whether it would make a payment for the stakes in each company by way of shares, cash or a mix of both.

The acquisition of Twisto is expected to close in Q4 2021, and the takeover of Spotti in Q3 2021.

In 2020, Zip announced the acquisition of New York based buy now pay later service provider, Quadpay, for $403m.

Following this deal, Quadpay is claimed to have seen its annual transactions increase by over 200%.

In a statement, Zip said: “Zip has adopted a similar approach to Quadpay, which proved to be highly successful. By initially making low-risk minority investments, Zip is well placed to validate cultural fit and management alignment, stress test the business plan and identify synergies, and plan for integration.”

Upon completion of the deal, Twisto and Spotti will be integrated into Zip’s global single merchant interface (SMI), which offers instant access to merchants in 11 countries across five continents.

Zip is claimed to have two million customers in Australia and New Zealand.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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