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Openpay (ASX:OPY) secures £25M funding from Global Growth Capital to support U.K. business 

Consumer Discretionary, Finance
ASX:OPY
01 June 2020 15:08 (AEST)
Openpay Group (ASX:OPY) - CEO, Michael Eidel

Source: retailbiz

‘Buy now, pay smarter’ Openpay (OPY) has secured a U.K. funding facility for £25 million (roughly A$46 million) with Global Growth Capital (GGC).

Openpay will have access to £10 million (roughly A18.4 million) immediately to support its fast-growing U.K. business.  This new facility has a 21-month term and is an addition to the existing $75 million worth of debt facilities in place.

Global Growth is a leading U.K. financier and has provided financial solutions to technology companies since 2016.

“Global Growth Capital has a track record of supporting growth companies such as Openpay. The company’s U.K. business is going from strength to strength and we’re pleased to be financially supporting the business for its next leg of growth,” GGC Partner Harsh Patel said.

Company CEO Michael Eidel says Openpay U.K. is emerging as a significant contributor to its total transaction value.

“This funding facility with Global Growth Capital adds strength to our strong balance sheet and provides us with ample funding to support the delivery of our current growth objectives in the U.K.,” he said.

“We are thrilled to have secured this significant funding capacity in the current market environment which is testament to both our differentiated BNPL [buy now, pay later] offering and to GGC’s great entrepreneurial and partnership approach,” he added.

The U.K. business is currently operating online. Openpay also launched with JD Sports recently, a £2.1 billion U.K. street wear and sports apparel retailer.

“We are proud to see such a respected brand become a live Openpay Merchant,” Michael said.

The company considers the newly acquired customers and total transaction value (TTV) in just the first three weeks of trading to be very encouraging.

Following the positive March quarter results, Openpay has reported May as being the strongest month in its history. TTV grew to $170 million, up from $87 million, in May 2019.

Openpay is up 26.4 per cent on the market today, trading for $1.63 per share at 2:45 pm AEST.

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