Australia-based global buy-now-pay-later platform Zip has acquired Dubai-based Spotii for $16.25 million, as the demand for installment payments on eCommerce transactions continue to expand across the world.
Under the agreement, the Australian FinTech will purchase the remaining shares in Spotii, plus adjustments for working capital, Zip stated in a statement to the Australian Securities Exchange, where its shares trade.
The investment will see Zip add to its initial 20 percent stake in Spotii (made in December 2020) by purchasing the remaining 80 percent, meaning a total valuation of $20 million for the Dubai firm. The acquisition of Spotii establishes Zip as a leading player in the Middle East, with Spotii operational in the UAE and KSA, and poised to expand further.
“The Spotii acquisition is an important step in Zip’s global expansion and international strategy, with Ecommerce in the Middle East on a significant upward trajectory. We have been working with Spotii since our initial investment in December 2020 to broaden our understanding of the BNPL opportunity in the region and have several exciting global merchants we are looking forward to activating in the coming months.”
Anuscha Ahmed, Co-Founder, and CEO of Spotii said, “Since founding Spotii in early 2020, we’ve seen significant uptake of the platform by merchants and customers, highlighting the appetite and need for BNPL solutions in the MENA region. Joining forces with Zip – a global leader in the BNPL space – will enable us to drive further growth by tapping into the company’s advanced technology and expertise.”
“For merchants, it means greater access to customers outside the MENA region, while BNPL customers in the regional markets will have greater access to international merchants. Ultimately, it highlights the Middle East as a growing region for eCommerce and BNPL offerings,” she added.
Furthermore, Zip has bought a majority stake in Twisto, a Czech company, giving it access to 27 European markets.