Zip Co Limited, a specialist in the digital retail finance and payments industry, has closed a AUD100 million debt funding agreement with Victory Park Capital (VPC).Zip offers point-of-sale credit and digital payment services to the retail, home, health, automotive and travel industries. This is Zip’s second transaction with VPC, having closed a AUSD108 million asset-backed warehouse facility with the firm in 2015 that later grew to AUD200 million, making VPC one of Zip’s earliest partners.
The debt facility from VPC 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 decisioning platform, previously known as SpotCap, that has originated over AUD200 million in credit to small businesses in Australia and New Zealand since 2015. The company recently announced a partnership with eBay Australia, where its 40,000 Australian small business merchants will have the opportunity to access working capital through Zip’s platform.
“We’re delighted to work with VPC again to support the launch of a new extension to our business,” says Peter Gray, co-founder and COO of Zip. “This comes at a time when Australia’s small businesses are confronting the extreme challenge of Covid-19, which has created enormous pressure on cashflow 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’s been a pleasure to partner with Zip as it has grown from a small fintech company to a leading player in the global payments ecosystem,” says Jason Brown, partner at VPC. “We look forward to continuing our partnership with Zip and seeing the success that comes with the launch of Zip Business.”
