Sezzle launches A$86.3 million capital raise to accelerate growth strategy

SYDNEY: Sezzle Inc. announced a capital raising of approximately A$86.3million (US$60.0million) to accelerate its growth strategy and strengthen its balance sheet.

The Capital Raising includes a fully underwritten institutional placement to raise A$79.1 million (US$55 million), followed by a non-underwritten Security Purchase Plan (SPP) that aims to raise approximately A$7.2 million (US$5 million).

Priorities for the proceeds raised under the Capital Raise include:

• Sales and marketing –additional business development and marketing personnel, and other related marketing costs;
• Product enhancement and expansion costs–the hiring of additional developers and software engineers for enhancements and development of additional functionality within the Sezzle Platform and systems integrations;
• International expansion opportunities–continued investment to support further market development in Canada and low cost testing in other markets; and
• Strengthening the balance sheet –including the costs of potential debt facility refinancing, cost of the offer and increased cash reserves.

Commenting on the launch of the Capital Raising and the Company’s strong performance in 2020, Sezzle’s Executive Chairman and CEO Charlie Youakim said, “Our strong 1H20 performance, improving consumer profile, and confidence in reaching an annualized run rate for UMS of US$1 billion (A$1.4 billion) by the end of 2020 allows us to be uniquely positioned to further expand through a number of near-term growth initiatives. Importantly, this capital raising will give us the ability to invest in these initiatives as well as fortify our balance sheet.”

Sezzle is a rapidly growing fintech company on a mission to financially empower the next generation. Sezzle’s payment platform increases the purchasing power for more than 1.4million Active Consumers by offering interest-free installment plans at online stores and select in-store locations.

Sezzle’s transparent, inclusive, and seamless payment option allows consumers to take control over the spending, be more responsible, and gain access to financial freedom. When consumers apply, approval is instant, and their credit scores are not impacted, unless the consumer elects to opt-in to a credit building feature, called Sezzle Up. This increase in purchasing power for consumers leads to increased sales and basket sizes for the more than 16,000 Active Merchants that offer Sezzle.