US-based Splitit Payments has signed a definitive agreement for an investment of up to $50m from funds advised by Motive Partners to expedite its growth and support the implementation of its strategic plan.
The investment commitment is composed of two $25m tranches in exchange for the issuance of new preference shares.
According to Splitit, the first tranche will be invested once shareholders approve the company’s delisting from the Australian Security Exchange (ASX) and redomiciling from Israel to the Cayman Islands.
The second tranche of investment will be made when the fintech company achieves certain 2023 financial performance milestones as well as the meeting of some customary conditions.
Splitit managing director and CEO Nandan Sheth said: “Attracting a strategic investor of this calibre is a testament to the quality of our team and our unique, innovative offering – especially given difficult market conditions for raising capital.
”This level of investment significantly strengthens our balance sheet, allowing the team to focus on our white-label product strategy, innovation, and our Tier One global distribution partners.”
Following an extensive review of strategic alternatives, Splitit’s board has unanimously ruled that the proposed transaction is the best available opportunity to generate long-term shareholder value.
According to the board, the investment will substantially bolster Splitit’s capital position and expedite its ability to draw large and sophisticated clients, develop collaborations, and invest behind its white-label technology platform.
Furthermore, as a private company, Splitit intends to partner with PrimaryMarkets, a private share trading platform, to facilitate periodic trading in the company shares following the completion of the delisting.
Founded in 2012, Splitit facilitates the next generation of buy now, pay later (BNPL) via the company’s merchant-branded installments-as-a-service platform.
