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Zip Expands into Europe and Middle East, Acquires Two BNPL Platforms
Zip has acquired Spotii, a Dubai-based BNPL platform, and Twisto, a platform based in Europe.
The platform has recently launched its offering in the US and the UK – these latest acquisitions are the next steps in its global expansion plans.
Zip has acquired the Dubai-based BNPL platform, Spotii, which was launched in 2020. The Middle East is considered one of the fastest-growing e-commerce regions on the planet. According to a report from Bain & Company, the online market is increasing by 25 percent YoY. Spotii currently has 650 merchants with total transaction value growing at an average of 90 percent on a month-on-month basis.
“Since founding Spotii in early 2020, we’ve seen significant uptake of the platform by merchants and customers, highlighting the appetite and need for BNPL solutions in the MENA region,” said Anuscha Ahmed, the Co-Founder and CEO of Spotii.
“Joining forces with Zip – a global leader in the BNPL space – will enable us to drive further growth by tapping into the company’s advanced technology and expertise. For merchants, it means greater access to customers outside the MENA region, while BNPL customers in the regional markets will have greater access to international merchants. Ultimately, it highlights the Middle East as a growing region for E-Commerce and BNPL offerings.”
Zip will acquire Spotii for USD$16 million ($21 million) implying an enterprise value of USD$20 million ($26 million). The transaction is set to be completed by the end of the third quarter in CY21.
In addition to the acquisition of Spotii, Zip has also released plans for entering the European BNPL market. Specifically, the platform has acquired the remaining shares of Twisto Payments. This will give the platform access to 27 EU countries – over one million consumers have used Twisto before, and it currently has an annual run rate of $12 million in revenue and $230 TTV, with 14,000 merchants.
Zip will purchase Twisto for €89 million ($140 million) and the acquisition will be completed by the final quarter of CY21. “The acquisition of Twisto shows our commitment to global growth and follows our ‘Coalition of Founders’ model, where we back strong founders with a shared vision and deep cultural alignment in our quest for global payments coverage,” said Larry Diamond, the Co-Founder and CEO of Zip.
“We are very much looking forward to adding this strategic geography to our growing footprint and fulfilling global merchant demand. We have been impressed by the Twisto team, their deep customer focus and product set and look forward to working closely with them to deliver on the opportunities we jointly have in front of us,” he said.