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Australian ‘buy now, pay later’ lender Zip seeks exit from UK | business news

An Australia-based “buy now, pay later” loan provider is considering exiting its UK operation just over a year after launch.

Sky News has learned that Zip Co, which is listed in Sydney, has started scouting potential buyers for its UK business.

As of Thursday, it was unclear whether Zip is considering closing the unit if it can’t find a buyer.

The company declined to comment on its considerations or the number of customers it had acquired since launching in the UK in March last year.

His decision to explore an exit from the UK comes amid a sharp downturn in the broader buy-now-pay-later sector.

On Monday, Klarna, the Swedish giant, confirmed a Sky News report it had Raised $800 million at a post-money valuation of $6.7 billion – down from over $45 billion two years ago.

The arrival of tech giants like Apple into the industry has alarmed investors from independent competitors, while valuations of tech companies in general are falling.

Zip this week abandoned a merger with Sezzle, a US competitor, a move that cost the Sydney-listed company $11 million in termination fees.

It was also reported in the past few days that Zip had decided to shut down Pocketbook, a money management app.

Zip is also present in countries like India, Mexico and Saudi Arabia.

Australian ‘buy now, pay later’ lender Zip seeks exit from UK | business news

Source link Australian ‘buy now, pay later’ lender Zip seeks exit from UK | business news

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