Afterpay unveils $200m investment and some big brand deals

Buy now pay later company Afterpay has unveiled a $200 million private investment from US technology venture firm Coatue, which is now its biggest outside investor, and presented new business deals with ebay and Mastercard at the company’s annual general meeting on Wednesday.

The payments firm, which has been in the spotlight in recent months amid regulatory concerns, told shareholders it viewed consultation with regulators as a privilege. At the same time, it stressed it was “different” from other buy now pay later schemes and would never be considered a traditional credit product as it only targeted low-value product purchases.

Afterpay, run by founders Anthony Eisen and Nick Molnar, has a new biggest institutional investor. Credit:Eamon Gallagher

The $200 million capital injection from Coatue is subject to a one-year escrow agreement and will see the investment manager buy Afterpay shares at $28.50 a share. The proceeds would go towards expanding Afterpay’s global platform and was geared around attracting new, long-term capital for the business, interim chair Elana Rubin told shareholders.

The investment also has a strategic dimension, letting Afterpay use Coatue’s data science expertise to develop retail data analytics tools for its business, she said.


Related posts

Make a comment