Splitit raises $71.5 mn, following record-breaking second-quarter growth

By Pavithra R

Splitit, a global payment solutions provider that enables shoppers to pay installments via their credit cards, has announced that the company has raised $71.5 mn in a private placement and share purchase plan (“SPP”).

The fundraising follows a record-breaking second quarter and has attracted many top institutional investors, including Woodson Capital Management, L.P. The FinTech is planning to use the finance to bolster its sales and marketing and product and technology.

Splitit empowers shoppers to maximize their credit through responsible cash flow management. According to company data, throughout the second quarter of 2020, the FinTech has processed over $65 mn in merchant sales volume, growing 176% quarter over quarter and 260% year over year and reported $2.4 mn in revenue for the second quarter, growing 460% year over year.

“Splitit has consistently been building the foundation to scale, and all indicators show that the time is now to accelerate our growth. We are excited to welcome new global institutional investors as part of this fund raise, including Woodson Capital Management, in addition to the support of our current investors,” said Brad Paterson, CEO of Splitit.

“We look forward to accelerating merchant and consumer adoption of Splitit in our core markets with this additional capital. We are proud to play a part in helping businesses thrive as they better meet the needs of their shoppers,” added Paterson.

Recently, Splitit partnered with Mastercard to accelerate global installment payments adoption.

Founded in 2012, Splitit’s patented technology enables e-commerce merchants to offer interest-free monthly installment payments to their customers at the point of sale. Splitit is currently used by over 1000 e-commerce merchants, and 309,000 shoppers with an Average Order Value (AOV) of $893.