Sezzle, an Australian fintech offering interest-free installments on purchases, has secured AUD79.1 million ($55 million) in a funding round via institutional placement, the company announced to the Australian Securities Exchange (ASX) on Friday.
The placement has been supported by the existing and new CHESS Depositary Holders (CDI) holders. The company issued 14.1 million CDIs under the Placement, representing 8.4 percent of its existing capital.
The capital raising plan comprised of a fully-underwritten institutional placement to raise AUD79.1 million ($55 million) and a non-underwritten share purchase plan (SPP) aiming for approximately AUD7.2 million ($5 million).
With the completion of the fully-underwritten plan, the company will now push for the non-underwritten plan.
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“We appreciate the continued support of our existing institutional investors, particularly those that have remained as CDI holders and supporters since our ASX IPO, around one year ago. It has been a hugely successful period for all Sezzle stakeholders and we thank these investors for the trust placed in the Sezzle management team and Board over that time, and also now for their ongoing endorsement,” Sezzle’s executive chairman and CEO Charlie Youakim said.
“We also recognize the support from the new institutional investors who participated in the Placement and their embracing of Sezzle management’s long-term vision and strategy to deliver returns over the coming years.”
As mentioned in the press release, the proceeds will be utilized to accelerate the company’s growth strategy and strengthen its balance sheet.
The market is reacting to the accomplishment
Due to the major funding, the publicly traded share of the company has significantly surged, trading at 22.3 percent higher, as of press time, than the previous day close.
“As a result of the Placement and the additional capital Sezzle is intending to raise under the SPP, Sezzle is now in an even stronger position for all of its investors, and very well placed to accelerate its growth strategy and undertake investment in initiatives to drive long-term value creation,” Youakim added.