Australian Buy Now, Pay Later provider Payright has completed a $27 million Series D fundraise through a mix of debt and equity, led by corporate advisory firm Henslow in partnership with wealth manager Escala Partners.
Founded by brothers Piers Redward and Myles Redward in 2016, the business has raised more than $55 million to date.
Payright provides finance for products and services at a higher price point than Afterpay in categories such as direct sales businesses, home improvement, photography, dental, and health and beauty.
Merchants are paid in full and up front on the day the transaction is made and Payright handles the customer’s repayment obligations. Transactions are typically around $1,000 up to $20,000 and the average transaction size is about $2,500. The platform also has more varied terms, from two months to 36 months, than the BNPL providers that are targeting impulse purchases.
Payright currently has approximately 1,500 merchants on board and a customer base of around 20,000 end-users.
The latest capital raise will be used to fuel the company’s next phase of growth, expand operations and enter into new markets and continue investment in technology.
Co-founder and joint CEO of Payright Myles Redward said the company has secured sophisticated funding to enable growth in the loan book and increase volume.
“Payright has grown quite quickly in a short amount of time with a near-doubling of revenue quarter-on-quarter over the last 18 months and annualised volume now tracking at over $60 million based on recent monthly run rate. Our team has expanded from three people to over 40, including a dedicated sales, technology and integration team, and operations and finance teams.”
Piers Redward, co-founder and joint CEO of Payright, said “With merchant awareness and consumer confidence in alternative payments at an all-time high, Payright is well placed to capitalise on new merchant opportunities. There is a clear growth in the buy now, pay later space in the addressable market — the opportunity is close to $300 billion in retail alone, and only a very small portion of this is currently being serviced by other players in the market.”