Souter Investments is delighted to announce it has invested in the FinTech interest-free-only credit provider, DivideBuy.
The investment from Souter Investments and Jon Moulton through his family office Perscitus LLP alongside debt funding from Shawbrook Bank and Paragon Bank will enable DivideBuy to grow further and offer many more UK retailers access to its market leading technology.
DivideBuy allows retailers to provide interest free credit as a purchasing option for their customers. The company has built its own market leading technology which it uses to underwrite 100% of their own lending which gives full control and complete transparency to retailer partners and consumers.
The technology integrates seamlessly with retailers’ websites and back office infrastructure and customers can spread the cost of their purchases in under 60 seconds, with 96% getting an approval decision.
Co-Founders Max Thowless-Reeves (Chairman) and Rob Flowers (CEO), said: “This investment by leading private equity players and banks in DivideBuy reflects the value that our business model and technology creates for retailers and customers and our progress as an organisation.”
Calum Cusiter, Investment Director at Souter Investments said: “DivideBuy represents an exciting opportunity for Souter Investments to support a fast growing, and innovative FinTech business with a highly backable and passionate management team. We look forward to working with Rob and his team during the next phase of growth.” Calum will join the board following the transaction.
Having already built a customer base of over 300,000 account holders, enabling them to spread the cost of their purchases, DivideBuy has significantly improved conversion rates for retailers, increased basket value and reduced basket abandonment thus improving customer loyalty. Retail partners typically see a 20 – 30% increase on approvals and conversions when switching to DivideBuy from a competitor.
Souter’s advisors for the transaction were Dickson Minto (legal), EY (financial), Baringa (commercial) and Crosslake (digital).
Founded in 2012 and based in Stoke-on-Trent, DivideBuy has provided interest free credit to over 300,000 account holders and, following this investment round, aims to increase this significantly over the next three years. The company currently has partnerships with over 400 retailers.
For more details please visit www.dividebuy.co.uk
About Souter Investments
Souter Investments is the family investment office of Sir Brian Souter, co-founder and Chairman of Stagecoach Group plc. It makes investments across a broad range of asset classes, with a primary focus on private equity and a portfolio of more than 30 direct private equity investments.
2018 investments included Broadway Partners, DMC Canotec and Pet Centar, whilst Souter Investments also recently announced the successful sales of First Scottish Group and OnniBus.com.
For Souter Investments press enquiries please contact Gordon Beattie at Beattie Communications on 0800 612 9890.