Souter Investments has invested in the fintech interest-free-only credit provider, DivideBuy. The investment from Souter Investments and Jon Moulton through his family office Perscitus, alongside debt funding from Shawbrook Bank and Paragon Bank, will enable DivideBuy to grow further and offer many more UK retailers access to its market leading technology.
DivideBuy allows retailers to provide interest free credit as a purchasing option for their customers. The company has built its own market leading technology which it uses to underwrite 100 per cent of their own lending which gives full control and complete transparency to retailer partners and consumers.
The technology integrates seamlessly with retailers’ websites and back office infrastructure and customers can spread the cost of their purchases in under 60 seconds, with 96 per cent getting an approval decision.
Co-Founders Max Thowless-Reeves (Chairman) and Rob Flowers (CEO), says: “This investment by leading private equity players and banks in DivideBuy reflects the value that our business model and technology creates for retailers and customers and our progress as an organisation.”
Calum Cusiter, Investment Director at Souter Investments, says: “DivideBuy represents an exciting opportunity for Souter Investments to support a fast growing, and innovative FinTech business with a highly backable and passionate management team. We look forward to working with Rob and his team during the next phase of growth.”
Cusiter will join the board following the transaction.
Having already built a customer base of over 300,000 account holders, enabling them to spread the cost of their purchases, DivideBuy has significantly improved conversion rates for retailers, increased basket value and reduced basket abandonment thus improving customer loyalty. Retail partners typically see a 20-30 per cent increase on approvals and conversions when switching to DivideBuy from a competitor.
Souter’s advisors for the transaction were Dickson Minto (legal), EY (financial), Baringa (commercial) and Crosslake (digital).
