Westpac has made one of the largest fintech equity investments in Australia to date with a $40 million investment in point-of-sale credit provider zipMoney.
Westpac has made a $40 million equity investment in point-of-sale credit provider zipMoney at $0.81 per share, representing a 14.1 per cent premium to the last closing price.
The new equity investment, which will be completed by 10 August 2017, will result in Westpac owning approximately 17.11 per cent of zipMoney.
zipMoney, which provides a 'buy now, pay later' service via its digital wallet, announced a $260 million credit facility with NAB earlier in 2017.
The proceeds from the investment will be used to "accelerate zipMoney's growth plans and the development of new products and technologies, including enhancing its data science and proprietary decisioning capabilities", said zipMoney in a statement on the ASX this morning.
"This investment will also provide additional equity capital to support the continued growth in the zipMoney loan book," said the statement.
"This investment, combined with the recent $260 million asset-backed securitisation warehouse program implemented on 25 May 2017, provides Zip with a scalable funding platform, from which to capitalise on the present market opportunity."
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