FinTech firm secures £60m funding to support retailer acquisition
Interest free credit provider DivideBuy, based in Stoke-on-Trent, has secured more than £60m of investment and debt financing from private equity investors and UK banks.
The backing comes from Souter Investments, family investment office of Sir Brian Souter, co-founder of The Stagecoach Group, and Better Capital founder Jon Moulton, through the family office and with committed and uncommitted debt facilities provided by Shawbrook and Paragon Bank.
DivideBuy said the funding will enable it to continue to develop technology and leverage it as a lender.
The investment supports the growth of DivideBuy’s retailer network, allowing more consumers access to what it calls a “transparent, flexible and easy way” to spread the cost of their shopping using interest free credit.
Max Thowless-Reeves, co-founder and non-executive chairman of DivideBuy said: “This investment by leading private equity players and banks in DivideBuy reflects the value that our business model and technology creates for retailers and customers as well as our progress as an organisation.
“Allowing retailers to offer interest free credit to their customers is conceptually simple but in practice significantly complex. Over the last four years we have innovated and broken barriers; our technology seamlessly meshes with any retailer’s website and IT estate and their customers can enjoy interest free credit in seconds.”
Robert Flowers, co-founder and CEO of DivideBuy, added: “Our business model works because we have taken a technology first approach to lending. We are in complete control over the experience our retail partners and consumers receive, something that can only be achieved by owning the full lending journey. Our adaptive lending technology assesses an individual’s risk profile and finds an approval solution that works for them. DivideBuy specialise in offering interest-free credit, we help retail partners develop strategy and tailor solutions that deliver.
“DivideBuy has one overarching goal; to make interest free credit easy and accessible to both retailers and consumers. Whether it be developing the application to work seamlessly with assistive technology, or giving consumers the flexibility to log in to their account to change a payment date. DivideBuy has focused on delivering technology and solutions that enhance the experience of our users and we will continue to do so.”
Calum Cusiter, investment director at Souter Investments, said: “DivideBuy represents an exciting opportunity for Souter Investments to support a fast growing, and innovative FinTech business with a highly backable and passionate management team. We look forward to working with Rob and his team during the next phase of growth.”
