Sezzle Plans to File for U.S. IPO

Buy now, pay later (BNPL) company Sezzle is planning to strike while the iron is hot.

The Minnesota-based firm, which is already publicly-listed on the Australian Stock Exchange (ASX), is hoping to capture U.S. investors, now that the BNPL trend has exploded in this continent. Plans for the public listing are still in early stages. Details, such as the timing, price, and use, have not been revealed.

Prompting the plan to list is the company’s recent growth. According to its latest earnings announcement, Sezzle added 400,000 customers and recruited 7,300 active merchants in the first quarter of this year. This boost brings the firm’s total users to 2.6 million and total merchants to 34,000. Not surprisingly, the surge in usage helped increase the company’s first quarter income, which was reported at $22.3 million.

Sezzle initially went public on the ASX in July of 2019, raising $30 million on its first day of trading. The company now has a market cap of over $777 million. This figure is almost 5x higher than it was at the start of 2020. Sezzle’s move to the U.S. public markets follows its competitor, Affirm, which debuted on the Nasdaq at the start of this year.

Sezzle’s BNPL technology allows customers to split their ecommerce purchases into four installments with only 25% down and no fees. The offering is currently available to shoppers in the U.S., Canada, and India, and will soon be offered to residents in Brazil.

In February, Sezzle teamed up with Discover to work with select merchants on Discover’s network to help them provide their customers with additional payment options. Last September, the company launched a virtual payments card that helps customers benefit from Sezzle’s BNPL tech when they make purchases at brick-and-mortar stores.

Sezzle was founded in 2016. Charlie Youakim is CEO. 

Photo by Ketut Subiyanto from Pexels