DelayPay raises funds in push to grow share of buy now, pay later market for farmers

SA investors are backing new buy now, pay later offerings to farmers looking for new ways to fund their livestock, machinery and other farm purchases.

A group of South Australian investors is backing the emergence of the buy now, pay later financing model in Australia’s agriculture industry, as farmers look for new ways to fund their livestock, feed, machinery and other farming purchases.

Farm sector borrowers are often unable to generate the steady cash flows needed to satisfy the requirements of traditional lenders, fuelling the growth of non-bank lenders – including buy now, pay later firms – which are looking to bridge the funding gap.

Established by Victorian farmers Dwain Duxson and Kelsey Miller in 2018, DelayPay was one of the first buy now, pay later firms to target the agriculture sector, providing capital of up to $500,000 – for stock, machinery and feed – which must be repaid within six months.

The company has provided more than $23m in funding to Australian farmers over the past 12 months, and is looking to more than double that figure to $50m following a recent crowd-funding campaign on the Swarmer platform.

The Swarmer campaign raised $288,000 from a group of predominantly South Australian families.

DelayPay’s chief financial officer, Adelaide-based Anton Phillips-Chantelois, bought a small stake in the company 18 months ago through his family office Bridgemill Ventures.

DelayPay chief financial officer and Bridgemill Ventures director Anton Phillips-Chantelois.

He said the company was now looking to increase its share of a market which could be worth $3bn based on the 30,000 small and medium-size Australian farming businesses that found themselves undeserved by the major banks.

“DelayPay provides payment extension to Aussie farmers who are often buying critical infrastructure, livestock or inputs such as fertiliser and feed,” he said.

“Our funding ensures weight gain on animals, maximises harvest of crops or gives buyers quick access where there is opportunity at an auction.

“Traditional lending models clearly have their place, however private markets offer a more dynamic approach to accessing capital and we want to ensure this segment grows in South Australia.”

Other specialist lenders in the growing non-bank market include buy now, pay later provider agPAY, which entered the market in 2021, and Agrifunder, which is headed up by Adelaide-based Dale Champion.

Mr Phillips-Chantelois returned to Adelaide 18 months ago following eight years working in corporate advisory roles in Sydney.

He established Bridgemill Ventures on his return, with a focus on investing in start-ups and emerging early stage companies.

It currently holds stakes in companies operating in industries ranging from energy to finance and agriculture, including online marketplace Farm Tender and Lot Fourteen-based iO Energy, which helps households and businesses pay less for green electricity.