Zip closes $100 million in debt funding from Victory Park Capital
Zip Co Limited, a player in the digital retail finance and payments industry,has announced it has closed a A$100 million debt funding agreement with Victory Park Capital, a global alternative investment firm.
Zip offers point-of-sale credit and digital payment services to the retail, home, health, automotive and travel industries. This is Zip’s second transaction with VPC, having closed a A$108 million asset-backed warehouse facility with the firm in 2015 that later grew to A$200 million, making VPC one of Zip’s earliest partners.
The debt facility from VPC will fund receivables and support the company’s recently launched Zip Business platform designed to support the small business community, a segment that has been underserved by traditional lenders in recent years.
Zip Business technology is based on a proven credit decisioning platform, previously known as SpotCap, that has originated over $200 million in credit to small businesses in Australia and New Zealand since 2015. The company recently announced a partnership with eBay Australia, where its 40,000 Australian small business merchants will have the opportunity to access working capital through Zip’s platform.
Peter Gray, co-founder and COO, Zip: “We’re delighted to work with VPC again to support the launch of a new extension to our business. This comes at a time when Australia’s small businesses are confronting the extreme challenge of COVID-19, which has created enormous pressure on cashflow and the business environment. VPC’s investment is part of our commitment to supporting the recovery and growth of the small business community in Australia and other markets where we operate.”
Jason Brown, partner, VPC: “It’s been a pleasure to partner with Zip as it has grown from a small fintech company to a leading player in the global payments ecosystem. We look forward to continuing our partnership with Zip and seeing the success that comes with the launch of Zip Business.”