Brierley-backed Afterpay signs Super Retail, Toys R Us
The fintech start-up backed by Ron Brierley has signed Super Retail Group and Toys “R” Us online to its platform.
The fintech start-up backed by corporate raider Ron Brierley has signed Super Retail Group and toy, baby and outdoor retailer, Toys “R” Us online to its platform, helping push forecast transaction revenue to $300 million on an annualised basis.
Super Retail Group owns brands including Amart Sports, Boating Camping Fishing, Supercheap Auto, Rays and Rebel and has over 640 stores across Australia and New Zealand and a strong online presence.
Tim Halaska, head of e-commerce and customer service at Toys “R” Us, said customer take-up of the Afterpay offering in the group’s stores was beyond expectations.
Afterpay facilitates online transactions for consumers and merchants by providing a real-time buy-now, pay-later credit service.
The company’s key point of differentiation is developing customer credit profiles to allow it to offer low-risk, individually tailored loans in real time and without unnecessary application paperwork.
In June it also started offering a reverse lay-by product, known as Afterpay in-store. The product allows retail customers to take their purchases upfront and pay for them later, while reimbursing the merchant immediately.
At the company’s recent annual meeting chief executive Nick Molnar revealed Afterpay now had 1500 merchants on its books. In October alone, 400 signed up. When the company floated in May it had only 100.
He said 70 per cent of customers were returning ones.
In addition to Super Retail and Toys “R” Us, merchants now include Country Road, MJ Bale, Seafolly, Hype DC, MARCS and Best & Less.
Mr Molnar said loss ratios remained considerably below 1 per cent, resulting in a margin to Afterpay of 2 per cent on all transactions.
The company listed on the ASX in May at $1.30, 30 per cent above its issue price. The shares hit $3 in early September and are now trading at $2.70.
Its early backers included Sir Ron Brierley’s ASX-listed Mercantile Investment Company, LinkedIn Southeast Asia managing director Cliff Rosenberg and Melbourne IVF founder John McBain.
Last month the group launched a $36m equity placement to support accelerating growth. Also, NAB agreed to a finance facility of $20m which started this month.
Analysts believe the NAB facility will help the company to process more than $1bn of transactions.
Afterpay reported a $1.7m net loss for financial 2016.
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