By Stuart Condie

SYDNEY--Afterpay Ltd. more than doubled first-half underlying sales on its platform on an 80% increase in customer numbers, although its net loss for the period rose 77% despite the Covid-driven shifts in consumer spending.

The buy-now-pay-later provider reported a net loss for the six months through December of 76.5 million Australian dollars (US$60.5 million), compared with a A$28.9 million net loss a year earlier. Revenue surged 89% to A$417.2 million as the value of transactions processed rose to A$9.8 billion from A$4.8 billion.

The jump was propelled by the addition of 5.8 million customers and 31,500 merchants over the past year as consumers have taken their spending online amid Covid measures including lockdowns and working from home.

Afterpay said it had 13.1 million active customers and 74,700 active merchants at Dec. 31. It said 8.1 million of those customers were in North America, where it is raising its underlying interest in its U.S. operations to 93% from 80%.

Afterpay on Thursday launched a A$1.25 billion convertible notes offering, with an option to upsize the offering by up to A$250 million. The notes are due in 2026 and convertible into fully paid ordinary Afterpay shares.

It said U.S.-based venture capital firm Matrix had agreed to waive 35% of the underlying interest it holds in Afterpay's U.S. unit for approximately A$373 million in cash. The acquisition price is accretive to Afterpay shareholders across gross merchant value, revenue and customer multiples, Afterpay said.

It did not pay a dividend.

Afterpay shares have pulled back 12% this week, but are still up more than 1400% up since the pandemic was roiling global markets last year. They last traded at A$134.36 prior to entering a halt for the capital raising, compared with 2020's lowest close of A$8.90, set on March 23.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

02-24-21 1813ET