Toronto, Canada-based PayBright, a leading buy-now-pay-later provider, is all set to be acquired by San Francisco-based Affirm for $340 million CAD.
Additional details of the transaction were not divulged. The deal is expected to close in the first quarter of 2021.
Founded in 2009 by Wayne Pommen, PayBright is a credit and payments startup that offers immediate point-of-sale financing and payment-in-installation plans for customers and merchants. Its platform provides consumers with buy-first-pay-later solutions at online and brick-and-mortar (refers to traditional street-side businesses that offer products and services to its customers face-to-face in an office or store that the business owns or rents) retailers. To date, it has partnered with more than 7K domestic and international vendors and has dispensed over US$1 billion in consumer credit. Some of its leading retail partners are Hudson’s Bay, eBay, Dynamite, SHEIN, Wayfair, Samsung, and Endy.
President and CEO Wayne Pommen said that her team built PayBright with the aim of making the everyday market experience simply better for Canadians. Associating with Affirm gives the startup the chance to deliver on that promise on a much larger scale. She feels that Affirm’s network, emphasis on trust and transparency, and industry-leading technology make it the ideal partner for PayBright. As part of a larger, global organization, PayBright aims to help even more merchants gain new customers and provide a greater number of customers with more power and flexibility in their buying decisions. She concludes by saying that the team is thrilled to be partnering with Affirm and taking buy-now-pay-later to the next level in Canada.
Affirm is a consumer finance company and claims to be a more flexible and transparent substitute for credit cards. It was founded in 2012 by PayPal co-founder Max Levchin. It provides credit through multiple certified lenders. Affirm has to date partnered with more than 6,500 merchants in the United States, with clients such as Walmart, Peloton, Oscar de la Renta, Audi, and Expedia. It provides credit through multiple certified lenders. The company has recorded significant revenue growth amid the COVID-19 pandemic. In its 2019 fiscal year, Affirm gained US$ 264.4M in revenue, increasing that to US$ 509.5M in 2020.
Affirm announced its decision to go public on the Nasdaq, two weeks ago.
Founder Max Levchin was quoted to say, “We are excited to combine with PayBright, creating the opportunity to expand our footprint across North America and scale our platform.” He further added that PayBright shares Affirm’s goal of enhancing the payments experience for consumers and merchants alike and that PayBright’s base of merchants complements Affirm’s own customer network. They look forward to welcoming PayBright’s talented team to the Affirm family, he concluded.
PayBright had previously secured US$ 34M in growth equity from alternative financing provider goeasy Ltd., in September 2019. Following the investment, Goeasy acquired a minority equity stake in PayBright, obtained shareholder rights as a noteworthy strategic minority investor, and a chair on PayBright’s advisory board. PayBright HAS in total raised US$ 60M across two equity rounds from investors including Canadian Business Growth Fund and iA Financial Group.
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