Sydney-listed Zip Co is sounding out buyers for its UK BNPL unit just over a year after arriving in the country, Sky News learns.
Zip's decision follows a tumultous week for the Australian buy now, pay later outfit, which this week terminated a proposed $491 million merger deal with US peer Sezzle, and sold off Pocketbook, the money management app it bought for A$7.5 million in 2016.
Zip is responding to a broad-based downturn in the once hot BNPL sector as the cost of servicing debts rises and VCs fight shy of pouring more money into the sector.
Sky News says it is unclear whether Zip is considering closing down the UK unit if a buyer could not be found.
The company declined to comment on its deliberations or on the number of customers it had acquired since launching in the UK in March last year.