Following this announcement, these funds are set to be used in order to accelerate Splitit’s development process, as well as to support the overall execution of its strategic plan. Motive’s USD 50 million commitment represented two USD 25 million tranches in exchange for the issuance of new preference shares.
The first tranche closed after Splitit received shareholder approval on the 13th of November 2023 for the process of voluntary delisting of the Company from ASX, as well as the redomicile of the company from Israel to the Cayman Islands by means of a share and exchange accomplished through a merger.
The second tranche is expected to be invested in Splitit’s certain goals for 2023’s full-year financial performance milestones, as well as the satisfaction of certain other closing conditions.
US-based instalment service Splitit represents an embedded white-label platform that gives clients the possibility to pay by installments leveraging their existing credit on their bank-issued payment card at checkout. The firm had multiple partnerships and product launches in the last couple of months, covering several different geographic areas around the world.
In September 2023, the company announced the release of the Pay After Delivery service for AliExpress customers and shoppers in the region of the US. Following this partnership, AliExpress mentioned the US expansion of the Pay After Delivery solutions, which followed its successful rollout on the platform across the region of Europe, including countries like Germany, Spain, the Netherlands Italy, France, the UK, and Australia.
According to the information provided in the press release, Splitit also implemented its instalment service in addition to the Pay After Delivery one in Spain and Germany, which allowed customers and clients to pay over the course of three or six months for AliExpress. Pay After Delivery represented Splitit’s most recent solution which enabled users to pay for goods after delivery through a custom-branded experience embedded within the AliExpress checkout flow. AliExpress shoppers pay after delivery by making use of their credit cards, with AliPay being included in AliExpress’ global payment solution partners.
Earlier in August 2023, Splitit secured a USD 50 million growth commitment from US-based private equity firm Motive Partners. The funding round was leveraged in order to accelerate Splitit’s development and to facilitate the execution of its strategic plan. The amount was also divided into two USD 25 million tranches in exchange for the issuance of new preference shares.
The first tranche was invested following Splitit’s voluntary delisting from ASX and after the relocation of the firm from Israel to the Cayman Islands. The second tranche was set to be provided after Splitit achieved specific financial milestones for the year 2023 and upon meeting certain customary closing conditions.
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