PayBright, one of Canada’s leading buy-now-pay-later providers, is set to be acquired by San Francisco-based Affirm.
Affirm is set to purchase PayBright for $340 million CAD, including cash and equity consideration. Additional terms of the transaction were not disclosed. The deal is expected to close in the first quarter of 2021.
“As part of a larger, multinational organization, we can help even more merchants attract new customers.”
– Wayne Pommen, PayBright
Toronto-based PayBright is lending and payments startup that offers instant point-of-sale financing and installment payment plans for consumers and merchants. Its platform is focused on providing consumers with pay-later solutions at online and brick-and-mortar retailers. Founded in 2009, PayBright has partnerships with more than 7,000 domestic and international retailers, and has approved over $1 billion in consumer credit. Some of its major retail partners include Hudson’s Bay, eBay, Dynamite, SHEIN, Wayfair, Samsung, and Endy.
“We built PayBright with the mission of making the everyday commerce experience simply better for Canadians,” said Wayne Pommen, president and CEO of PayBright. “Partnering with Affirm gives us the opportunity to deliver on that promise on a much larger scale. Affirm’s network, focus on trust and transparency, and industry-leading technology make it the ideal partner for PayBright.
“As part of a larger, multinational organization, we can help even more merchants attract new customers and provide a greater number of consumers with more control and flexibility in their purchasing decisions. We are delighted to be joining forces with Affirm and taking Buy Now, Pay Later to the next level in Canada,” the CEO added.
The announcement of the deal comes two weeks after Affirm filed to go public on the Nasdaq. Affirm is a consumer finance company, which touts itself as “a more flexible and transparent alternative to credit cards.” It was founded in 2012 by PayPal co-founder Max Levchin.
“We are excited to combine with PayBright, creating the opportunity to expand our footprint across North America and scale our platform,” Levchin, who serves as Affirm’s CEO, said of the PayBright deal. “PayBright shares Affirm’s goal of improving the payments experience for consumers and merchants alike, and PayBright’s base of merchants complements our own customer network. We look forward to welcoming their talented team to the Affirm family.”
Affirm has partnerships with more than 6,500 merchants in the United States, with customers that include Walmart, Peloton, Oscar de la Renta, Audi, and Expedia. It provides loans through a number of certified lenders. Amid the COVID-19 pandemic, which has created massive opportunities for e-commerce companies, Affirm has recorded significant revenue growth. In its 2019 fiscal year, Affirm pulled in $264.4 million USD in revenue, growing that to $509.5 million in 2020.
The acquisition of PayBright follows $34 million in growth equity that the FinTech startup raised from alternative financing provider goeasy Ltd., in September 2019. As part of the investment, goeasy acquired a minority equity stake in PayBright, received shareholder rights as a significant strategic minority investor, and a seat on PayBright’s advisory board. PayBright had raised a total of $60 million across two equity rounds. Its other investors include Canadian Business Growth Fund and iA Financial Group.
Feature image via Pixabay