Motive Partners acquires a controlling stake in Australian-listed BNPL — Splitit Payments
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Motive Partners, a private equity firm based in New York, recently acquired a controlling stake in Splitit Payments — an Australian-listed Buy Now, Pay Later (BNPL) company.
An important partnership for Splitit Payments
Splitit Payments offers a white-label, fully embedded payments platform that allows the firm’s users to pay using card-attached installments. They can use their existing cards at checkouts without seeing an increase in their total credit exposure.
The company has moved off-exchange now, and has decided to transfer its domicile from Israel to the Cayman Islands. The move was made after closing of the first $25 million of the total of $50 million large growth commitment from various funds that are advised by Motive Partners.
As for the second part of the $50m figure, it will be invested after Splitit archives some 2023 financial performance milestones, according to the plan. The company said that it is currently focusing on doing this.
More importantly, the cash injection will be a huge help for the one-year-old company, providing it with a longer capital runway. This will assist the firm as it pursues a goal of becoming profitable, which is not an easy thing to achieve given the state of the financial markets, which are still far from making a full recovery.
This is why the new partnership with Mtive Partners is an important step for the firm, as it will allow it certain benefits, such as access to the fintech VC’s collective experience, as well as its industry network.
The new partnership will help Splitit see outstanding growth
Splitit’s chair, Dawn Robertson, commented on the new development, stating that the firm is delighted to close Motive’s first round of growth investment.
Robertson added that, as a world-class private equity sponsor that commands quite significant capital, in addition to deep industry relationships, value-additive capabilities, and extensive payments expertise, Motive is the ideal partner for Splitit. It will be able to provide support in multiple areas, and help the company create long-term value.
Jeff Yabuki, Motive Partners’ Chairman and Founding Partner, also commented on the matter. He said that his firm is thrilled to become Splitit’s strategic investor. He added that the company, as well as its management, have worked on creating a differentiated approach to commerce innovation across an impressive set of strategic partnerships.
The firm’s officials believe that this will help with further unlocking an attractive market. However, the firm is also looking forward to teaming up with Splitit’s own talented team, which will help take the company to even further heights.
