Payright, a buy now and pay later service, has raised $27m in a Series D round to support the expansion of its loan book.
The round, which was made up of both equity and debt, was led by corporate advisory firm Henslow in partnership with wealth manager Escala Partners. It brings Payright’s total funding efforts to $55m.
Funds from the round are being used to extend Payright’s presence in the market, growing both its loan book and merchant footprint.
The Australian FinTech company aims to differentiate itself from other players in the market, which typically focus on small-ticket items, by helping consumers making transactions up to $20,000. Payright currently has around 1,500 merchants on its books and due to it supporting higher transaction prices, it can offer its services to home improvement, professional photography, health and travel.
Consumers can access loans at the point of sale of up to $20,000, which boast zero interest and terms of 36 months.
Payright co-founder and joint CEO Myles Redward said, “Our sweet spot is between $1000 to $5000 and repayments can be between 3 to 36 months. As we move further into the home improvement and solar installation market, we are looking to extend credit available to consumers.
“The ‘buy now pay later’ trend is still in its infancy, the sector doubling every six months and currently cover only about 10 per cent of the broader retail market. More businesses across varied industry types are going to start offering this type of service.”
Last year, fellow point-of-sale financing service provider Bread closed a $60m equity financing round which was led by Kinnevik.
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