Zip Co Limited (Z1P: ASX), a Sidney, Australia-based player in the digital retail finance and payments industry, closed a A$100m debt funding.
Victory Park Capital, a global alternative investment firm, provided the financing.
This is Zip’s second transaction with VPC, having closed a A$108m asset-backed warehouse facility with the firm in 2015 that later grew to A$200m.
Zip offers point-of-sale credit and digital payment services to the retail, home, health, automotive and travel industries.
The debt facility from VPC will fund receivables and support the company’s recently launched Zip Business platform designed to support the small business community, a segment that has been underserved by traditional lenders in recent years. Zip Business technology is based on a proven credit decisioning platform, previously known as SpotCap, that has originated over $200m in credit to small businesses in Australia and New Zealand since 2015. The company recently announced a partnership with eBay Australia, where its 40,000 Australian small business merchants will have the opportunity to access working capital through Zip’s platform.
Zip Co offers point-of-sale credit and digital payment services to the retail, home, health, automotive and travel industries. The company has operations across Australia, New Zealand and the United Kingdom, with associates in the USA and South Africa. Zip also owns Pocketbook, a personal financial management tool and SME lending provider Spotcap. The platform is entirely digital and leverages big data in its proprietary fraud and credit-decisioning technology to deliver real-time responses.