Buy-now-pay-later firm Divido has raised $30m today in a Series B funding round boosted by HSBC and ING, as it eyes expansion.

The retail finance company, which launched in 2014, has a white-label platform that links up lenders, merchants and partners at the point of sale, to make digital spending quicker and easier.

“The retail finance market is in a period of exponential growth, expected to hit $2.5 trillion next year,” founder and CEO of Divido, Christer Holloman, said.

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Matching the rise of online shopping has been the rise in buy-now-pay-later firms – particularly in the era of fast fashion and Covid-19.

“This is an exciting and rapidly growing market that is constantly evolving and accelerating following Covid,” managing director of ING Ventures, Jan Willem Nieuwenhuize, said.

However, the company also offers banks the opportunity to boost their lending revenue, Divido’s boss said, adding that it may also “diversify their portfolio and neutralise the threat from new entrants.”

The funding round, led by HSBC and ING, was also helped by the Sony Innovation Fund by IGV, SBI Investment, OCS, Global Brain and DG Daiwa Ventures, alongside its existing investors.

Revenue and market growth

Divido already operates in 10 markets but is looking to expand into other markets internationally with its new bout of funding.

“There is clear demand for retail finance across the globe, both from customers and merchants,” the global head of venture, digital innovation and partnerships at HSBC, Catherine Zhou, said.

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The firm, which also allows customers to control and configure their payments, was one of Deloitte’s UK Technology Fast 50 winners in November – which selects the fastest revenue growing tech companies.

Previous winners include Revolut, Transferwise and GoCardless.

“Being one of the fastest-growing technology companies in the UK is an impressive accomplishment,” the lead partner for Deloitte’s programme, Duncan Down, said at the time.

“We commend Divido for making the Deloitte UK Technology Fast 50 with a phenomenal 1,250 per cent growth rate over four years.”

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