Tymit, a buy now, pay later (BNPL) startup, has raised £23m in Series A funding to help its members achieve financial stability.
According to a report from UK Tech News, the round was led by Mike Ashley-founded firm Frasers Group.
Tymit was founded in 2017 by two brothers Martin and Nico, who believed that there should be a better way of financing purchases over time to manage a monthly budget rather than using credit cards or loans.
As users of consumer credit products themselves, the founders saw that credit cards are very easy to use but offer a poor experience when it comes to financing a purchase.
Cards often have unclear pricing, lots of fees, and a lack of features to keep balances under control. However, alternatives like store loans require applying and running credit checks every time they are used and are not readily available in most places when needed.
After spending years working with major high-street Banks, both founders were convinced that they could leverage the latest technology in cards and payments to offer a much better experience to the customer. One that is cheaper, more transparent, more flexible, and easily available anywhere when needed.
With this latest round of funding, Tymit said it will accelerate product development as well as support the launch of what the company calls a B2B2C instalment programme
Martin Magnone, CEO and co-founder of Tymit, said, “With this investment, we can expand our operations, bring new partners on board, and continue to help merchants meet customer needs and drive growth.
“The credit providers and banks who dominate our wallets built their products for the bottom line, not for consumers or merchants. High merchant fees of 2-8% might be good for profits, but they hamper merchant growth. This has to stop.”
BNPL platform SeQura recently received €150m in senior financing through an asset-backed agreement with Citi.
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