Zip -the Australian public limited company will operate from Europe and the Middle East by acquiring European BNPL provider Twisto and UAE-based startup Spotii. The company announced that it would own the entire shares of both the companies. As Zip plans to expand business globally, the acquisition plays a significant role in boosting the growth in new regions. The company has chalked out clear strategies of investments that identify and integrate with the new ventures.
Zip has accelerated growth in the last acquisition- QuadPay, with annual transactions crossing 200% after the addition.
Zip has a market cap of 3.939B with an enormous customer base that reached 6.4 million, and merchants on the platform reached 45,300. The company raised $150 million in funds last year that will help to expand the businesses in the Middle East and Eastern Europe. The third quarter saw incredible revenue and transaction volume growth, $1.6 billion and 114.4 million, respectively.
Presently both Twisto and Spotii are profitable avenues offering high performance. They can jointly leverage the benefits churning out perfect synergy from Zip’s competencies. The company will extend its buy now pay later operations strategically in Europe and the Middle East. The company will benefit in Europe, which has $1.1 trillion annual eCommerce market space, and Twisto can push the company into a vast market spread across 27 member states of the EU. The company will get an advantage from the merchant’s demands in the Middle East and Europe.
Twisto embarks more than 1 million customer’s transactions on the platform. The company’s annual run rate is $12 million in revenue and 14,000 merchants. The recent partnership execution with the global fintech leader PayU will bolster merchant procurement by the end of 2021.
Zip will complete the Twisto deal with $140m for the rest of the shares accounting for 89.94%. Its wholly-owned subsidiary Zip UK will complete the transaction.
Spotii has been operational since 2020 and got massive traction of 650 merchants. The platform integrates the merchants that include flagship stores like Jashanmal and Danube Home. From its inception, the transaction volume has accelerated month-on-month at an average of 90%+.
The zip will complete the acquisition of Spotii in Q3 CY21 and the Twisto in Q4 CY21. The company acquired Spotii for a valuation of $20 million, it can fund at the company’s discretion either with Zip’s ordinary shares, cash, or a combination of both.
Both the deals will propel the presence of Zip in multiple markets to provide a global BNPL solution.