Afterpay to raise 1 billion in Fresh Capital | ASX Market Update

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Afterpay to raise 1 billion in Fresh Capital | ASX Market Update

The Sezzle Inc (ASX: SZL) share price has been a strong performer on Tuesday. In morning trade, the buy now pay later provider’s shares are charging 20% higher to a record high of $4.88. Sezzle’s strong form continued in the second quarter with stellar underlying merchant sales (UMS) growth. Sezzle reported UMS of US$188 million (A$272.3 million) for the quarter. This represents a 58% quarter on quarter increase and a 349% year on year increase. Key drivers of this growth were increases in active customers, active merchants, and usage. At the end of the quarter there were 1.48 million active customers using its platform. This is up 28% from the last quarter and 243% from the prior corresponding period.

Latest monthly retail payment figures released by the Reserve Bank of Australia show a transaction bounce back across the economy. According to the RBA, 828 million purchases were made by Australian-issued cards during the month of May, a 16.5 per cent month-on-month increase. The total monetary value of the card purchases sits at $52.3 billion. In the previous month, total card spending fell by 22 per cent, a direct result of COVID-19 restrictions impacting spending abilities. Outstanding credit card balances fell by 10.3 per cent compared with the previous month, while year-on-year outstanding debt decreased by 26.1 per cent.

Buy now, pay later mogul Afterpay will raise $1 billion in fresh capital as part of a strategy to speed up its global expansion, with founders Anthony Eisen and Nick Molnar selling $250 million in shares as part of the process. The moves comes as Afterpay reported record sales across the fourth quarter of the financial year, with underlying sales jumping 127 per cent to $3.8 billion. Afterpay's full-year sales have now doubled on the prior financial year, up 112 per cent to $11.1 billion.

#Afterpay #SZL #COVID19 #Australia #Kalkine


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