Digital bank Zopa has acquired the Newcastle-under-Lyme, Staffordshire-based buy now pay later (BNPL) company DivideBuy for an unspecified amount.
Zopa’s first acquisition comes fresh off the back of its £75m round this month, where the fintech said it would spend funds on its “growing balance sheet” and “M&A dealmaking”.
Its acquisition of DivideBuy after its launch into the BNPL space in June last year, offering payments of up to £30,000.
“We are proud to be entering the POS space with DivideBuy, a market-leader with a standout product and technology stack, and a culture that is closely aligned to our values of fairness and customer centricity,” said Jaidev Janardana, CEO of Zopa.
Zopa’s acquisition will see it integrate “DivideBuy’s POS financing solution” with its “underwriting capabilities, regulatory permissions, and access to funding”, said Janardana.
DivideBuy is used by the likes of Emma, Simba, Swyft, and Nectar.
In its raise this month, Zopa also said that it expects to achieve full-year profitability this year and is looking at a potential London listing.
Robert Flowers, CEO, DivideBuy, said: “We were delighted to be approached by Zopa in its search for a POS finance provider to support its vision of building Britain’s best bank.
“DivideBuy’s product, technology and culture align perfectly with Zopa’s values and brand strength, making this an ideal fit for the future of lending.”
DivideBuy and other BNPL services operating in the UK are set to face increased regulation from the Financial Conduct Authority, with draft legislation on the BNPL industry published by the government this week.