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Splitit Payments (ASX:SPT) - CEO, Brad Paterson - The Market Herald
CEO, Brad Paterson
Source: Business Insider
  • Buy now, pay later competitor Splitit (SPT) is planning to tap investors for some extra funding later this week as it continues to post strong quarter-on-quarter growth
  • This will be the second capital raise taken on by the company this year, with Splitit raising $16 million through a share placement in April
  • Over the June quarter, Splitit grew gross quarterly revenue by 460 per cent compared to the same time last year, underpinned by a 260 per cent year-on-year increase in merchant sales volume (MSV)
  • Looking ahead, the company plans to keep up its large merchant acquisition strategy to maintain the MSV and revenue growth
  • With just over two financial quarters' worth of funds in the bank, it's likely the new capital will go towards this strategy
  • Shares in Splitit last traded on Friday afternoon for $1.36 each

Buy now, pay later competitor Splitit (SPT) is planning to tap investors for some extra funding later this week as it continues to post strong quarter-on-quarter growth.

The details of the upcoming capital raise are yet to be revealed, but Splitit froze its shares this morning in preparation. Shares are slated to be released from their trading halt on Wednesday morning as the capital raise is launched.

At the end of the June quarter, Splitit revealed it had around $58 million to play with — $25.7 million in the bank and $32.4 million in available finance facilities.

Of course, considering the company's $27 million cash burn, this means Splitit had just over two financial quarters worth of funding left at current spending levels.

Still, the spending has not been without its rewards; in Splitit's latest quarterly report, the fintech company told shareholders it increased gross quarterly revenue by a whopping 460 per cent compared to the same time last year. In fact, the June 2020 quarter's revenue eclipsed the full-year revenue for the 2019 financial year.

The strong revenue boost was underpinned by a 260 per cent year-on-year increase in merchant sales volume (MSV). The company now has its tech offered through over 1000 total merchants and used by 300,000 total shoppers.

Splitit said its focus for the new financial year will be ongoing large merchant acquisition in some key markets so as to keep MSV and revenue growing quickly.

This week's capital raise will be the second taken on by Splitit this year. In April, the company raised $16 million through a share placement with new shares priced at just under 41 cents a pop.

With company shares priced well over a dollar since mid-June, however, it's likely that Splitit will be able to bank a bit more coin from a similarly-sized placement this time around.

Splitit shares last traded for $1.36 each on Friday afternoon. The company has a $485.49 million market cap.


Find out more about this capital raise


SPT by the numbers
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