Zopa has snapped up buy now, pay later outfit DivideBuy, it's first acquisition from a $75 million warchest raised earlier this year.
DivideBuy allows merchants to offer their customers interest free payment options at checkout. Shoppers can spread the cost of their purchases over a two-to-twelve month period with over 400 merchants.
Under Zopa, DivideBuy will offer credit for larger purchases from £250 to £30,000.
The firm intends to run credit and affordability checks against all applications, report debt positions to credit reference agencies and offer proprietary tools to help customers pay down their debt.
The deal is expected to increase Zopa’s revenue by at least 20% in the next few years.
Zopa CEO Jaidev Janardana says: “This acquisition helps us bring to life BNPL 2.0, an evolution of BNPL which we believe delivers the easy, integrated product which customers love whilst also addressing some of the issues around affordability and responsible lending which have plagued the sector."
Zopa in January picked up £75 million in funding which it said would be funnelled to drive mergers and acquisitions dealmaking during Q1 of 2023.
Terms of the transaction with DivideBuy have not been disclosed.
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