SYDNEY, January 29, 2019 /PRNewswire/ --
Splitit Ltd (ASX: SPT) ("Splitit" or the "Company"), a leading global monthly instalment payment solution, today announced the successful close of its heavily oversubscribed initial public offer (IPO), raising AUD $12M via the issue of 60M shares at AUD $0.20 each, giving Splitit a market capitalisation of AUD $54M. Splitit lists on the Australian Securities Exchange on 29th January, 2019, trading under the ASX Code SPT.
Splitit provides merchants worldwide an immediately implementable, consumer-oriented solution that allows customers shopping online, on mobile, or in store to split purchase costs into interest and fee-free monthly instalment payments using their existing credit or debit card. Use of Splitit's technology requires no application, registration, or credit check, translating to a quicker, more seamless process at checkout. As a cross-border, omnichannel solution, merchants anywhere in the world can offer Splitit to their customers, on any device. The Company processed over AUD $94M across 118,000 transactions by the end of Q4 2018.
In the retail world, the average American consumer abandons 11 online shopping carts a year, translating into billions of dollars of lost revenue for retailers. Reasons for these staggering rates include fear of overspending, a lack of flexible payment options, and cumbersome checkout processes that turn customers away. Splitit addresses these obstacles by providing consumers with a payment tool that manages cash flow and personal finances while maintaining a seamless checkout process, leading to increased average order value (AOV), decreased cart abandonment, and higher revenue for retailers.
Splitit intends to apply the funds from its capital raising to strengthen its sales and marketing efforts to accelerate merchant acquisition and build distribution channels, as well as to penetrate additional market verticals and countries. The proceeds will also go toward developing new deliverables including next generation mobile solutions and a mobile wallet.
"This is a significant milestone for Splitit and we are honored that our investors have recognised our contribution to the industry as a leading global payment solution," said Gil Don, CEO and Co-Founder of Splitit. "We will use the opportunity to further expand Splitit's capabilities and reach, bringing frictionless payment flexibility to countless retailers across the globe. We will continue to demonstrate the value of interest-free payment technology solutions that help customers use their credit lines wisely while enabling them to afford their desired purchases and better manage their cash flow."
Splitit welcomes five new experienced directors to join co-founders Gil Don and Alon Feit on the Company's diverse and international board, including:
- Spiro Pappas, Chairman (Sydney) - who has significant experience in the banking sector, including serving as a National Australia Bank senior executive in various positions including Executive GM Corporate and Institutional Banking, CEO Asia, and Executive GM International and Innovation
- Thierry Denis (Sydney) - who has had an impressive career in the electronic payments industry and served as the former President/Managing Director of Ingenico North America, one of the world's largest point of sale companies
- Dawn Robertson (New York) - a retail sector heavyweight who has run Myer, Stein Mart, Macys.com, Bloomingdales.com, and Old Navy
- Michael Keoni De Franco (New York) - an entrepreneur with significant experience in mobile communications, currently running a telehealth business he founded and sold to Life Biosciences
- Mark Antipof (London) - a veteran in the payments space who spent half his career at Visa, finishing up in December 2018 as the Chief Commercial Officer, Europe
Splitit is a payment method solution enabling customers to pay for purchases with an existing debit or credit card by splitting the cost into interest and fee-free monthly payments, without the need for additional registrations or applications. Splitit enables merchants to offer their customers an easy way to pay for purchases in monthly instalments with instant approval, decreasing cart abandonment rates and increasing revenue. Serving many of Internet Retailer's top 500 merchants, Splitit's global footprint extends to hundreds of merchants in 27 countries. Headquartered in New York, Splitit has an R&D center in Israel and offices in London, with plans to establish itself in Australia for its expansion into the Asia-Pacific region.
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