On Thursday, the San Fransisco-based Wisetack , a buy now pay later startup, raises USD 45 Million in a Series B funding round, which was led by Insight Partners.
The round was participated by Bain Capital Ventures and Greylock Partners who also participated in the financing. After this funding round, the total amount raised by the company is USD 64 Million since it was initiated.
With its new capital, Wisetack intends to expand into other verticals of services, such as auto repair, dental, elective medical, and veterinary and legal services. It also aims to expand its team of 40 into double over the next year.
Insight Partners Principal Rebecca Liu-Doyle describes Wisetack as “a standout in the industry.”
“Wisetack has a differentiated platform for embedded BNPL that is purpose-built to address use cases that are both more complex and less well-served than e-commerce,” she added.
About Wisetack –
Wisetack was initiated in 2018, with a purpose to aid in-person businesses offer financing to consumers. Although its is not the first company to do this but, the thing make it different from others is that it basically embeds the software platform with the financing option that businesses have already developed and operating.
Wisetack focuses on service-based businesses, such as plumbers and HVAC contractors. For instance, if one’s AC unit goes out and costs more than a thousand to replace, then they could have the option of paying for it in installments if the contractor or seller has Wistack’s API embedded into its platform.
So far, Wisetack has grown rapidly by merging with SaaS businesses like Jobber and Housecall Pro, companies like this provide financing to their customer base. The company seems to fill a gap.
The CEO Bobby Tzekin believes that buy now, pay later can be more intriguing than paying for purchases with a credit card, for a few reasons. Consumers have the option of paying in installments for anywhere from three months to 60 months.
“This often means it’s more affordable to buy the better piece of equipment since they can spread the costs over time,” he said.
The company makes money by charging a processing fee to merchants, as well as charging interest to consumers — which can be anywhere from 0% to 29%, “depending on how good their credit is,” Tzekin said.
“But credit cards charge compounded interest, whereas we charge simple interest,” he added.
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