Splitit receives a $60 million capital commitment amid reorganization and delisting plan

Splitit has faced similar challenges as other BNPL firms.

Splitit, one of the major players in the buy now, pay later (BNPL) market, has received a $60 million "capital commitment" from strategic investors, including Thorney Investment Group, Parea Capital, and Motive Partners. The funds will be used to support the execution of its strategic plan and for growth. However, the commitments have unusual conditions attached. For the first $25 million provided by Motive, Splitit will have to delist from the Australian Securities Exchange, where it went public in 2019, and re-incorporate as a private entity based in the Cayman Islands. For the second $25 million from Motive, Splitit will have to achieve certain undisclosed 2023 full-year financial performance milestones. Thorney Investment Group and Parea Capital will provide $10 million in the form of a convertible note.

The moves come as Splitit reorganizes and pivots away from the consumer market to launch a white-label installment payments platform for merchants. Splitit has faced similar challenges as other BNPL firms. The market has fallen in popularity as investors have pulled back amid macroeconomic uncertainty that questions the fundamental business model. Splitit, which is headquartered in Atlanta, Georgia, with satellite offices in London and Israel, is registered in Australia as a foreign corporation, which enabled it to list on the ASX. The company's transformation away from the consumer market was followed by a sharp increase in revenues from 2022 to 2023. However, given the company's transformation, it remains to be seen if the move will pay off in the long run.