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April 14 (Reuters) – Australia’s buy-now-pay-later (BNPL) Zip Co said Wednesday it will raise A $ 400 million ($ 307.48 million) through senior unsecured conversion notes to fund its growth and expansion plans.
On Tuesday, the company BNPL reported record quarterly earnings and announced plans to expand into Canada and Southeast Asia.
“The additional capital from this offering will support the active pursuit of core and international growth opportunities,” said Chief Operating Officer Peter Gray in a statement.
The company BNPL, which allows users to pay for their purchases in multiple installments, has seen an explosion in transaction volume and active customers as the pandemic drastically changed consumer behavior, moving more towards the online space.
Zip, which saw transaction volumes more than double in the March quarter, took a strategic stake in Philippine company TendoPay and carried out a soft launch in Canada during the quarter in a bid to better compete with bigger rivals such as Afterpay.
Senior banknotes are expected to be listed on the Singapore exchange, Zip added.
$ 1 = 1,3009 Australian dollars Report by Sameer Manekar in Bengaluru; Edited by Rashmi Aich