Tuesday 15 June 2021
Sydney-headquartered fintech Zip has acquired Middle Eastern 'buy now pay later' platform Spotii for an enterprise value of USD 20 million, which will be paid in Zip’s ordinary shares, cash, or a combination of both.
As part of the deal, Spotii shareholders will also receive USD 15 million in additional consideration if performance milestones related to total transaction value, active customers, and gross profit margin are achieved over the next three years.
Zip already owned a 20% stake in the Dubai-based startup and is now acquiring the rest from founders and other shareholders. The Australian 'buy now pay later' company had previously invested an undisclosed amount of money in Spotii in December 2020. In addition to its cofounders and Zip, Spotii had investment from Dubai-based Daman Investments.
Founded in 2019 by a former Abraaj executive and Anuscha Iqbal and her brother Ziyaad Ahmed, Spotii had launched its 'buy now pay later' platform in the United Arab Emirates in May 2020 and expanded to Saudi Arabia six months later. The startup enables merchants in both the countries to offer interest-free payment options to their customers during online checkout and for instore purchases.
Spotii has 650 merchants on its platform in the UAE and Saudi Arabia, with the total transaction volume growing at an average of 90% month-over-month since launch.