Fastest growing 'buy now, pay later' platform raises A$43.6 million to further expand presence in U.S. and Canada e-commerce market; closes up 80% on first day of trading
MINNEAPOLIS, July 30, 2019 /PRNewswire/ -- Sezzle, Inc. (ASX: SZL), the highest consumer-rated interest-free installment payment solution, today announced it is now a publicly-traded company on the Australian Securities Exchange (ASX). The capital raised will fund Sezzle's continued focus on identifying and capturing future growth opportunities through the expansion of Sezzle's retail merchant base and product offering, including funding for product development and engineering, sales and marketing, data sciences, merchant and customer support, and general administration.
The offering of the company's CHESS Depositary Interests was priced at A$1.22 per share and closed the first day of trading up 80% at A$2.20, representing a market value of approximately US$270 million. Demand for Sezzle shares was significantly oversubscribed and there was no sell-down from existing shareholders.
Sezzle enables consumers to budget their payments over time by dividing purchases into four interest-free installments at zero interest. Sezzle provides consumers with the freedom to buy what they want without having to resort to high-interest credit cards or other payment options that may adversely impact credit scores. For younger shoppers, particularly millennials and Gen Zers who have little-to-no credit history, Sezzle represents a smarter alternative to traditional forms of credit.
"Our decision to list on the ASX is a reflection of the Australian investors' familiarity with 'buy now, pay later' payment solutions. The Australian market is several years ahead of North America in terms of providing a more flexible way for consumers to pay over time," said Sezzle CEO and co-founder Charlie Youakim. "We have seen firsthand the demand for our payment platform in the U.S. and Canada and are excited to continue to lead the industry in offering the most consumer-friendly solution that financially empowers young people."
The Company has established itself as the preferred payment platform in the U.S. for responsible online purchases. As of June 30, 2019, Sezzle is available at over 5,000 Active Merchants1, which represents 52% growth over the previously reported figure of 3,321 Active Merchants as of March 31, 2019. This trajectory has been fueled by the demand from shoppers and from retail partners who want to provide a more seamless checkout solution. Adding Sezzle to e-commerce platforms can increase basket sizes by up to 50%, and all transactions are fully guaranteed by Sezzle and settled upfront.
"We have experienced phenomenal growth to-date and this capital injection will put our sales and marketing efforts into overdrive," said Paul Paradis, co-founder and Sezzle's Chief Revenue Officer. "The Sezzle IPO on the ASX will give us the fuel required to scale our business, move into new verticals, invest in technology, and connect in a more meaningful way with our shoppers."
1 Active Merchants are defined as those that have transacted with Sezzle in the past 12 months.
About Sezzle Inc.
Sezzle Inc. is a technology driven, payments company based in the United States and listed on the Australian Securities Exchange with the mission of financially empowering the next generation. Sezzle provides a payments platform that facilitates fast, secure payments between shoppers and retailers, via a short-term, interest-free installment payment plan that delivers to shoppers both a budgeting and financing value proposition.
Sezzle's CDIs are issued in reliance on the exemption from registration contained in Regulation S of the US Securities Act of 1933 (Securities Act) for offers of securities which are made outside the US. Accordingly, the CDIs, have not been, and will not be, registered under the Securities Act or the laws of any state or other jurisdiction in the US. As a result of relying on the Regulation S exemption, the CDIs are 'restricted securities' under Rule 144 of the Securities Act. This means that you are unable to sell the CDIs into the US or to a US person who is not a QIB for the foreseeable future except in very limited circumstances until after the end of the restricted period, unless the re-sale of the CDIs is registered under the Securities Act or an exemption is available. To enforce the above transfer restrictions, all CDIs issued bear a FOR Financial Product designation on the ASX. This designation restricts any CDIs from being sold on ASX to US persons excluding QIBs. However, you are still able to freely transfer your CDIs on ASX to any person other than a US person who is not a QIB. In addition, hedging transactions with regard to the CDIs may only be conducted in accordance with the Securities Act.
For more information, visit www.sezzle.com