{"id":32018,"date":"2023-10-20T14:26:42","date_gmt":"2023-10-20T14:26:42","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/zipmoney-gets-100-million-in-firepower-to-take-on-the-big-retailers-startupsmart\/"},"modified":"2023-10-20T14:26:42","modified_gmt":"2023-10-20T14:26:42","slug":"zipmoney-gets-100-million-in-firepower-to-take-on-the-big-retailers-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/zipmoney-gets-100-million-in-firepower-to-take-on-the-big-retailers-startupsmart\/","title":{"rendered":"ZipMoney gets $100 million in firepower to take on the big retailers – StartupSmart"},"content":{"rendered":"
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Online retail finance startup zipMoney<\/a> now has $100 million in \u201cfirepower\u201d to take on the major players.<\/p>\n

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The money is in the form of a $108 million credit facility backed by large US firm Victory Park Capital, marking its \u201cfirst deal in Australia\u201d and it will also contribute at least $1 million in equity.<\/p>\n

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Sydney-based zipMoney provides paperless online consumer finance for small to medium retailers as an alternative to the big corporations, offering point-of-sale credit and digital payments.<\/p>\n

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Billed as \u201conline lending meets the checkout\u201d, online retailers can embed its software into the checkout process, with its customers then getting the option to purchase an interest-free zipMoney account instead of paying with a credit card or PayPal.<\/p>\n

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It\u2019s not a new concept, with big retailers like Harvey Norman and JB Hi-Fi offering their own brand of retail financing, but with the large cash injection, zipMoney will now be able to compete with these big players.<\/p>\n

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\u201cHaving access to such a substantial warehouse facility delivers the necessary firepower to truly disrupt the sector, providing the platform zipMoney requires to become the digital leader in retail finance,\u201d zipMoney co-founder Larry Diamond tells StartupSmart<\/i>.<\/p>\n

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\u201cIt really allows us to turbo-charge the business and go after the big end of town.\u201d<\/p>\n

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Expanding the offering<\/b> <\/p>\n

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The startup completed a backdoor listing on the ASX in September, raising more than $5 million through the process.<\/p>\n

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While the startup\u2019s has mainly focused on SMEs since its inception in 2013, the startup will now be turning its attention to larger retailers and scaling its offering.<\/p>\n

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It bills its product as cheaper and faster than the more mainstream alternatives, with Diamond pointing to the \u201cfrictionless\u201d integration with online retailers.<\/p>\n

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\u201cWe do things very differently to the traditional incumbents,\u201d he says.<\/p>\n

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\u201cEverything can be done on a smartphone in a few minutes, rather than with a bunch of paperwork and credit cards.<\/p>\n

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\u201cThere are two million small businesses out there and they have been shut out from retail finance. We\u2019re there to level the playing field.<\/p>\n

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\u201cIt\u2019s a very digitised solution and we work with the businesses on a customised outcome rather than trying to push a square peg through a round hole.\u201d<\/p>\n

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The world\u2019s spotlight on Australia<\/b><\/p>\n


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For Victory Park Capital, it\u2019s an opportunity to get a foothold in the Australian fintech sector before the local market catches on.<\/p>\n

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\u201cWe see tremendous opportunity to be a leader in the Australian market,\u201d Victory Park Capital vice president Harsh Patel says.<\/p>\n

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\u201cThere is a clear void in the market as traditional financing sources remain reluctant to support the local fintech sector.\u201d<\/p>\n

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The firm has also invested $1 million in zipMoney via an equity placement, and there\u2019s room for further $1 million soon too.<\/p>\n

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Diamond says it\u2019s huge for the startup to have Victory Park Capital come on board as an investor, not just a lender.<\/p>\n

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\u201cFor us it\u2019s fantastic to get one of the most preeminent credit lenders to come in and take an equity position and become a long-term partner in the business,\u201d he says.<\/p>\n

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\u201cThey\u2019ve been a fantastic enabler for so many innovative fintech disrupters around the world and this is fantastic validation for us and the sector locally.<\/p>\n

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\u201cWe\u2019re in a role where the traditional financers are struggling to play.\u201d<\/p>\n

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Do you know more on this story or have a tip of your own? Raising capital or launching a startup? Let us know. Follow StartupSmart on Facebook, Twitter, and LinkedIn. <\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

Online retail finance startup zipMoney now has $100 million in \u201cfirepower\u201d to take on the major players. \u00a0 The money<\/p>\n","protected":false},"author":2,"featured_media":62647,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/32018"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=32018"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/32018\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/62647"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=32018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=32018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=32018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}