Three ASX BNPL player in focus amid Zip & Sezzle merger talks

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  • Zip Co has confirmed to be in talks with Sezzle for a potential acquisition.
  • Other BNPL shares such as LBY, DOU and IOU attracting investors attention, amid a buzz in the BNPL space.
  • Investors must do their own due diligence before investing in the equity markets.

The Australian BNPL space has suddenly been catching investors’ attention after Zip Co Limited (ASX:Z1P) confirms that it is in talks with Sezzle Inc (ASX:SZL) in relation to a potential acquisition. However, Zip Co has also said that discussion is still in the preliminary stage and there is no certainty as to whether any form of transaction would materialize or not.

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Despite that, investors have flocked to get their hands on Sezzle shares which is up 7.94% for the day, last closing at AU$2.31 on the back of a massive volume of over 3.87 million shares. Let us have a look at other ASX BNPL shares which have been under investors’ watchlist amid the acquisition talks between two prominent BNPL players.

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  1. Laybuy Limited (ASX:LBY)

The first BNPL share on the list is Laybuy. The company allows to buy your favourite product and pay the total cost over a period of six weekly, without any interest or hidden charges. With its easy and simple to use dashboard, tracking spendings and purchases at one place becomes a breeze.

Investors are also looking at Ladbuy as a value buy, as LBY shares are down 87.41% over the course of one year, ended 25 January 2022. The stock last traded at AU$0.18 and the market capitalisation of the company stood at AU$49.68 million.

  1. Douugh Limited (ASX:DOU)

Douugh is a neo bank that aims to help people to live a financially healthier life by helping them to efficiently manage their personal finances and grow their wealth over time. In 2020, the company partnered with humm Group (ASX:HUM) to enter into BNPL space and offer its credit services in the US market.

DOU shares have also had a rough ride n the past one year, tanking up to 69.41% to the last closing price of AU$0.052, as of 25 January 2022. Despite increasing net loss by 10 times to AU$13.49 million in FY21, as compared to FY20, investors are looking at these dirt-cheap prices as a lucrative opportunity.

  1. IOUpay Limited (ASX:IOU)

The last name on the list, IOUpay is a digital payments platform and provides BNPL services. It enables both merchants and customers to use its payment gateways on both the android and iOS platforms. The company has a market capitalisation of AU$132.33 million.

IOU shares have been on investors radar since last few sessions as the company announced earlier this month that the transfer of licence ownership and control of SKM is completed. The Company had been awaiting the required approval from the Malaysian Ministry of Housing and Local Government and it was getting delayed due to COVID-19 situation. IOU shares last closed at AU$0.235 on 25 January 2022.

Bottom Line

Many investors have rushed to buy Sezzle shares amid a potential acquisition by Zip Co. Some of the investors are also looking at beaten down BNPL shares in their quest to find valuable buys. BNPL sector is a growing one and might encounter some hinderances in the future, therefore investors should do their own due diligence before investing.

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