Aussie BNPL Beforepay raises $9 million in pre-IPO funding round

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Beforepay receives funding in pre ipo funding

Australia-based next-generation BNPL firm, Beforepay raises $9 million in a pre-IPO capital raising. The buy now, pay later firm capitalizes on the momentum in the sector and the round was led by Sydney-based VN fund Alium Capital. The funding round also attracted various other existing investors including James Spenceley (Founder of Vocus and Chairman of Airtasker) and other high net worth investors.

Just like its previous raising, this round of funding was also oversubscribed, with Beforepay only seeking out $8 million.

Beforepay Founder on raising pre-IPO capital

Beforepay Founder, Tarek Ayoub said that an initial public offering was absolutely on the cards but the decision of timing was still to be made. Ayoub added that this is surely a pre-IPO round and they’re considering an IPO sometime in 2021, but in terms of set time, they don’t have one as of now. They’ve invested a substantial amount of time in understanding their customers and now it is about ensuring the broader investment market gets it.

My Ayoub added that Generation Z and Millennials are its most common customers. They use the BNPL service to pay bills and go out with friends. Over 60% of customers also use other buy now, pay later services and Beforepay has been developing a way to factor in their use of those other services and products to its consumer checks. Mr Ayoub believes that Gen Z and Millenials are the first ones to adapt to newer technology but older Australians would also eventually embrace buy now, pay later, sooner or later.

SEE ALSO: Energytech & digital payments platform Brighte raises $100 million

Beforepay – an Aussie BNPL player

Beforepay is Australia’s first ‘Pay on Demand’ service to give customers access to their pay in a way which is fair, transparent and flexible. Launched in late 2019, Beforepay is headquartered in Sydney. Tarek Ayoub is the CEO of Beforepay. The fintech was founded by him along with Dean Guo Mao, who is also the company’s Chief Technology Officer. It charges a fixed fee of 5% on its Pay On Demand solution. It charges no additional interest and has no other hidden fees. Beforepay also enables users to get access to their salaries in advance, with the funds able to be spent anywhere they want. 

According to Crunchbase, Beforepay has raised US$ 3.1 in its series A funding round and till date, it has raised $23 million. Since November 2020, the BNPL has doubled in size from having 100,000 active users to over 200,000. The fintech also added lawyer Natasha Davidson and former Pepper Group CEO Patrick Tuttle to its board. 

SEE ALSO: Intiger Group acquired Sydney-based fintech Complii

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Riddhi Jain is a technology content writer. She is based in India and has been working as a content writer since 2018. Riddhi has been writing content in the tech domain since May 2020 and can’t get enough of it. Riddhi has pursued most of her education from her hometown, Indore. She has graduated as a Bachelor of Business Administration and discovered her love for writing blogs while pursuing an internship during college. Once she discovered her love for writing, she went on to improve this skill set (and hasn’t stopped since). Riddhi’s writing relationship with iTMunch began in May 2020. This is where she developed a knack for writing content for the technology domain. She's an expert in tech content writing who has written over 700 blogs for iTMunch in just a year. Riddhi loves diving deep into tech sub-domains like financial technology, marketing technology, HR technology, Artificial Intelligence and gaming technology. She loves staying updated with the latest and upcoming trends in digital marketing, digital payments, fintech, gaming, web design and app development. She cherishes writing about futuristic technologies like blockchain and cryptocurrency, NFTs, Internet of Things, Facial Recognition, Machine Learning, Edge Computing, etc. Riddhi also likes to keep an eye on what’s going on with the tech titans like Google, Facebook and Apple. One of her major interests is in staying updated with the latest IT startups and the groundbreaking technologies they’re coming up with. When Riddhi is not writing content, she is binging on documentaries on Netflix (check out ‘The Great Hack’, ‘Seaspiracy’, and ‘What the Health’). She also likes reading books once in a while (Yuval Noah Harari and Michelle Magorian are some of her favorite authors). Riddhi also likes listening to podcasts like The Tim Ferriss Show (do listen to the ones with guest Naval Ravikant) and The Joe Rogan Experience.