Sezzle plans IPO in the US to cash in on BNPL boom

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Sezzle IPO | iTMunch

US-based fintech Sezzle Inc announced that it will be soon filing for an Initial Public Offering in the United States. It will file for listing to tap investors in the BNPL sector’s biggest market. A listing in the United States will help Sezzle further open doors to an investor base that potentially provides an easier access to capital funds. Sezzle’s market value is about AU$1 billion (approx. US$777.60 million). It has climbed about 5 times from where it began in 2020 before the growth explosion in the BNPL sector.

Fintech Sezzle’s IPO filing announcement

The payment platform announced its plans on Friday, 30th April 2021, to file a registration statement with the United States Securities and Exchange Commission. The company hasn’t yet decided or determined the timing of the IPO or number of shares to be offered. It also hasn’t announced pricing or use of the proceeds. As a result, Sezzle will become a reporting firm for the US SEC purpose and will be subject to filing current, quarterly and annual reports with the SEC. Charlie Youakim, Sezzle Chief Executive Officer told Reuters that the company would remain listed in Australia.

In other news, Sezzle also reported an over trebling of the value of transactions the company processed in the first quarter to $375.1 million. The numbers beat RBC Capital Markets’ estimates by 10%. It also flagged its plans to launch in Brazil, which will be using a similar low-cost strategy it adopted in India.

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Market America and Sezzle partnership

On 29th April 2021, Sezzle Inc announced a partnership with Market America Worldwide. Market America is a United States-based internet marketing and product brokerage company. It is also the proud owner of e-commerce website SHOP.COM, an enterprise where the buy now, pay later online payment services of Sezzle may be of use. Through this new partnership, Sezzle will provide the independent distributors, online shoppers and customers of Market America with a convenient and flexible payment option. This payment option will enable all parties to exercise more control over how and when they pay.

The proposed Sezzle IPO is subject to multiple conditions, like the condition of the market as well as the effectiveness of the registration statement to be filed. At 10:16 am AEST, Sezzle was up 7.55% and was trading at $9.55 per share.

SEE ALSO: Airwallex said ‘No, thank you’ to a takeover bid by Stripe

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