Total amount raised
$1.3 Billions
Latest funding date
7/1/2024
Location
Zip has successfully raised significant funding through various rounds, including a recent Post-IPO Equity round. The company offers a range of financial services, including Buy Now, Pay Later options for consumers and merchants.
Keep reading to explore the intricacies of Zip's fundraising journey and the investors backing this innovative platform.
What Is Zip?
Founded in 2013 by Larry Diamond and Peter Gray, Zip is headquartered in Sydney, New South Wales, Australia. The company specializes in providing Buy Now, Pay Later services, allowing consumers to manage their payments through a mobile app and browser extension.
Zip's innovative financial solutions cater to both consumers and merchants, offering flexible payment options for online and in-store purchases. The company has grown significantly since its inception, now employing between 1001 and 5000 people.
For more detailed information, you can visit their Crunchbase profile or their official website.
How Much Funding Has Zip Raised?
- Amount Raised: $1M
- Date: November 2015
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support initial growth and operational costs.
- Amount Raised: $100M
- Date: November 2015
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand credit offerings and enhance technology infrastructure.
- Amount Raised: $20.6M
- Date: June 2016
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enter new markets.
- Amount Raised: $260M
- Date: May 2017
- Lead Investors: National Australia Bank (NAB)
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support loan book growth and diversify funding sources.
- Amount Raised: $40M
- Date: August 2017
- Lead Investors: Westpac
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance product offerings and expand customer base.
- Amount Raised: A$100M
- Date: November 2020
- Lead Investors: Victory Park Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fuel international expansion and strengthen balance sheet.
- Amount Raised: A$120M
- Date: December 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and invest in new technologies.
- Amount Raised: A$400M
- Date: April 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fund international expansion, particularly in the US market.
- Amount Raised: $225M
- Date: January 2024
- Lead Investors: Victory Park Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing growth and operational needs.
- Amount Raised: A$217M
- Date: July 2024
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance financial stability and fund strategic initiatives.
Total Amount Raised: $1.38B. Current Valuation: Not publicly disclosed.
Key Investors
- Victory Park Capital
- Details: Victory Park Capital is a global alternative investment firm that provides capital to emerging and established businesses. They focus on delivering flexible financing solutions to companies across various industries.
- Investment Focus Areas: Financial services, fintech, consumer finance.
- Notable Investments: Avant, Fundbox, Bread.
- Westpac
- Details: Westpac is one of Australia's largest banks, offering a wide range of financial services including personal banking, business banking, and wealth management. Established in 1817, it is headquartered in Sydney.
- Investment Focus Areas: Banking, financial services, wealth management.
- Notable Investments: SocietyOne, Coinbase, Zip.
- National Australia Bank (NAB)
- Details: NAB is a major financial institution in Australia, providing a comprehensive range of banking and financial services. It serves millions of customers across Australia, New Zealand, and around the world.
- Investment Focus Areas: Banking, financial services, fintech.
- Notable Investments: Xero, Square Peg Capital, Zip.
What's Next for Zip?
Zip's future looks promising as it continues to capitalize on the growing demand for Buy Now, Pay Later services, particularly in the US market through its subsidiary Quadpay. With transaction volumes doubling to $1.6 billion and a significant influx of new customers, the opportunity for expansion is substantial. The recent $400 million raised through senior convertible notes will further fuel this international growth, allowing Zip to diversify its capital sources and minimize shareholder dilution.
Future fundraising opportunities appear bright, especially if Zip's current strategy proves successful. The listing of notes on the Singapore Securities Trading exchange could open additional avenues for capital. However, challenges such as intense competition from major players like Afterpay, managing shareholder expectations, and ensuring successful integration of new operations remain. Navigating these hurdles will be crucial for Zip's sustained growth and market presence.
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