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Another buy now, pay later player from UK: Klarna rival Divido raises $30M from HSBC and ING

London-headquartered white-label platform for retail finance, Divido has recently raised a $30 million Series B funding round. The funding will help facilitate the company’s international expansion while continuing to build out its market-leading platform for lenders and merchants.

The round was led by global banks HSBC and ING, with participation from Sony Innovation Fund by IGV, SBI Investment, OCS, Global Brain and DG Daiwa Ventures along with existing investors DN Capital, Dawn Capital, IQ Capital and Amex Ventures. Royal Park Partners acted as exclusive financial advisor to Divido and its shareholders.

An alternative to credit cards

An ever-increasing number of consumers are now seeking alternative options to credit cards so that purchase costs can be distributed effectively. This will only further increase with the ongoing pandemic.

Cashing in on this new trend and talking about the path-breaking milestone, Christer Holloman, Founder and CEO at Divido, said: “The retail finance market is in a period of exponential growth, expected to hit USD 2.5 trillion next year. At Divido, we have created a global standard for banks, retailers and payment partners to connect seamlessly to offer ‘Buy Now Pay Later’ to consumers.”

The company’s white label platform connects lenders, merchants and partners at the point of sale, transforming retail finance with proven technology and industry expertise to create a flexible way to control and configure payments.

Transforming retail finance

Launched in 2014, the Klarna rival from the UK has now has more than 1,000 clients and operates in ten markets across two continents. Its mission is to transform retail finance and enable its lender and merchant customers to get to market, fast, with a superior, value-driven and responsible retail finance programme.

Talking about the new development, Catherine Zhou, Global Head of Venture, Digital Innovation and Partnerships at HSBC said: “There is clear demand for retail finance across the globe, both from customers and merchants. The Divido platform enables lenders to serve customers in this area with a compelling, well-managed proposition.”

Talking about the new funding and partnering with the startup, another prime investor, Jan Willem Nieuwenhuize, Managing Director of ING Ventures remarked: “ING is focusing our innovation efforts around defined value spaces. Divido aligns with our lending value space and has a strong strategic fit with ING’s consumer finance business. This is an exciting and rapidly growing market that is constantly evolving and accelerating following Covid.”

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