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Monday 13 September 2021

Potteries based DivideBuy in BNPL push

DivideBuyAs the BNPL market continues to expand (see: Zilch set for US bridge head), another UK provider of point of sale credit is looking to capitalise on this buoyant sector. Located in Stoke-on-Trent, DivideBuy has secured a lending facility of £300m from Davidson Kempner Capital Management, as part of a minority equity deal.

Led by founder and CEO, Rob Flowers, the Potteries-based firm facilitates the purchase of larger-value items via interest free credit over periods of up to 12 months. Currently around 500 retailers use DivideBuy's platform, including Cloud Nine, MusicMagpie and Simba Sleep. The company has experienced healthy growth and is on the target to hit a Gross Merchandise Value (GMV) of £175m by the end of 2021.

DivideBuy, which is a trading name of Rematch Credit, will use this latest funding to help expand its presence in this rapidly growing and increasingly competitive market. The company, which began life in 2012, also plans to expand its senior team and stakeholder network at home and abroad.

The BNPL model is great for retailers and can help consumers to spread the cost of vital purchases. There are however, growing concerns over the way in which platform lenders are driving up the credit burden amongst the low paid. With this in mind, it is perhaps no coincidence that DivideBuy was conceived in Stoke, one of the UK’s most deprived areas, with a high proportion of low-income families and a lower than average life expectancy. I can however vouch for the fact that it’s also one of the friendliest places in the UK and (in the spirit of full disclosure) I should also reveal that it’s where my own family hails from.

Posted by: Jon C Davies at 08:57

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