Zip closes $ 100 million debt financing with Victory Park Capital
Investment will enable Zip to launch a full line of Zip Business payment and credit products
Zip Co Limited, a leading player in digital retail finance and payments, today announced that it has entered into a A $ 100 million debt financing agreement with Victory Park Capital (“VPC” ), one of the world’s leading alternative investment companies. Zip provides point-of-sale credit and digital payment services to the retail, home, healthcare, automotive and travel industries. This is Zip’s second transaction with VPC, after closing an A $ 108 million asset-backed warehouse with the company in 2015, which then grew to A $ 200 million, making VPC the one of Zip’s first partners.
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VPC’s credit facility will fund receivables and support the company’s recently launched Zip Business platform, designed to support the small business community, a segment that has been underserved by traditional lenders in recent years. Zip Business technology is based on a proven credit decision platform, formerly known as SpotCap, which has provided more than $ 200 million in credit to small businesses in Australia and New Zealand since 2015. The company has recently announced a partnership with eBay Australia, where its 40,000 Australians small traders will have the ability to access working capital through the Zip platform.
“We are delighted to be working again with VPC to support the launch of a new extension of our business,” said Peter Gray, Co-Founder and COO of Zip. “This comes at a time when small businesses in Australia are facing the extreme challenge of COVID-19, which has created enormous pressure on cash flow and the business environment. VPC’s investment is part of our commitment to supporting the recovery and growth of the small business community. in Australia and other markets where we operate.
“It has been a pleasure working with Zip, which has grown from a small fintech company to a leading player in the global payments ecosystem,” said Jason Brown, Partner at VPC. “We look forward to continuing our partnership with Zip and seeing the success that accompanies the launch of Zip Business.”
Zip Co Limited (Z1P: ASX) or (“Zip”), listed on ASX, is a leading player in the digital retail finance and payments industry. The company provides point-of-sale credit and digital payment services to the retail, home, healthcare, automotive and travel industries. Zip operates in Australia, New Zealand and the UK, with associates in the US and South Africa. Zip also owns Pocketbook, a leading personal financial management tool, and SME loan provider Spotcap. The company focuses on offering transparent, responsible and fair-priced products for consumers and SMEs. Zip’s platform is fully digital and leverages big data in its proprietary fraud and credit decision technology to deliver real-time responses. Zip is managed by a team with over 100 years of retail finance and payments experience and is a licensed and regulated credit provider.
For more information visit: www.zip.co.
About Victory Park Capital
Victory Park Capital invests in emerging and established companies in various industries in the United States and abroad, which are often unable to access traditional sources of capital. The company’s differentiated offerings take advantage of a vast network of industrial relations, disciplined arrangement, creative financing capabilities, broad expertise in credit structuring and special situations. The company was founded in 2007 and is headquartered in Chicago with additional resources in New York, Los Angeles and San Francisco. VPC is a private company and an investment advisor registered with the SEC. For more information, please visit www.victoryparkcapital.com.
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Capital of Victory Park
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