(Reuters) – Afterpay is exploring additional overseas listings amid growing US investor interest, Australia’s buy-now-pay-later said on Thursday after reporting first-half sales more than doubled.
Fintech Australia and its global competitors such as Klarna, Affirm and Sweden’s Zip Co have seen explosive growth since the pandemic locked in large parts of the world and made more people turn to online shopping.
Afterpay shares have gained more than 1,500% since March, establishing itself as the 12th most valuable company in Australia.
Afterpay also said it raised A $ 1.25 billion ($ 995 million) in convertible banknotes in a complex deal to buy Matrix Partners stock from its US business – which accounts for 43% of its sales. The United States is also a key growth market for the industry where it struggles with fast-growing Klarna.
Klarna, who is reported to be tapping into more private funding, posted his full-year results on Thursday evening.
Afterpay’s legal losses more than doubled to A $ 79.2 million as the strong growth of its UK business pushed the unit’s valuation higher and increased the value of put options held by other companies. Zip also posted a much bigger half-year loss after buying New York counterpart Quadpay.
While Afterpay’s gross transaction loss fell to 0.7% – indicating fewer customers skipping payments – margins also fell slightly to 2.2% from six months ago.
Transactions made through Afterpay totaled A $ 9.8 billion in the six months to December 31, double the A $ 4.8 billion processed last year, supported by strong holiday spending.
Active subscribers jumped 1.9 million to 13.1 million in the three months to December.
($ 1 = 1.2547 Australian dollars)
Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Forward Samuel