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BNPL invoice financier BizPay gears up for $400m-plus float

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There’s another fast-growing buy now, pay later company with its sights set on the local bourse.

Buy now, pay later/invoice financier BizPay has jumped into the 2021 float pipeline. Erin Jonasson

Street Talk understands BNPL/invoice financier BizPay is gearing up for a run at the ASX, in a deal that is expected to see it raise about $100 million and value it at more than $400 million on a market capitalisation basis.

Sources told this column BizPay had been out pitching funds with a chunky $24 million pre-IPO round over the past few months, which implied an $84 million pre-money valuation.

And now that that cash was safely in the bank, the company’s next stop was a listing on the ASX within 12 months.

BizPay pitched itself to its pre-IPO investors as a BNPL solution for business to business transactions – and said it had no competitors with the same market focus.

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The company will pay a client’s invoices upfront in return for a four-instalment payment plan and a fee, or provide instalment payment plans to its client’s suppliers. BizPay also offers traditional invoice financing.

Investors were told the company notched $7 million total transaction volume in March this year and that number had been growing 60 per cent each month, on average

BizPay is hoping to get that transaction volume number to $25 million per month before it pulls the trigger on a float.

Listed buy now, pay later peers typically trade on between 1.5 times and 2 times annualised transaction volume. If BizPay could garner that sort of valuation, it would imply a $450 million market capitalisation at the low end of that range.

Peloton Capital handled the pre-IPO round and would be stepping into a corporate adviser role for the float. BizPay is understood to be in talks with potential brokers for the float.

Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at sarah.thompson@afr.com
Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
Tim Boyd is a journalist, based in Sydney, who writes for the Street Talk column. Connect with Tim on Twitter. Email Tim at tim.boyd@afr.com

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