Afterpay raises $117m to bolster overseas operations
24 August 2018, Written by David Simmons
Following its bumper FY18 results announced on Thursday, Afterpay (ASX: AFT) has confirmed it has raised $117 million to push its operations overseas.
As reported on Thursday, Afterpay has set its sights on the UK market and will continue its push in the US.
The fintech says the $117 million will go towards funding the group's ambitious international expansion strategy.
The placement was supported by existing shareholders and new investors and was oversubscribed. The placement was priced at $17.05 per share; the top end of the placement price range.
Afterpay will launch in the UK, the world's third largest e-commerce market, in the next six months.
It's expansion into the UK is underpinned by a strategic acquisition of a local buy now, pay later business ClearPay Finance Limited. The company has purchased 90 per cent of ClearPay shares from ThinkSmart Limited.
This acquisition will enable AfterPay to hit the ground running once it has secured retail partners in the region. The ClearPay brand will be transitioned out and replaced with AfterPay.
The fintech's announcement comes as Afterpay announced its FY18 results, displaying a FY18 earnings figure of $33.8 million, and revenue of $142.3 million, up 390 per cent on FY17.
Afterpay recorded a full year net loss after tax of $9 million, an improvement of 7 per cent on FY17. A portion of this loss can be attributed to costs associated with Afterpay's 2017 merger with Touch Corp.
In the first quarter of FY19, the company says roughly $736 million worth of products were transacted through Afterpay, meaning the company has continued to see growth in the new financial year.
Shares in Afterpay are up 8.25 per cent to $20.08 per share at 11.03am AEST.
Business News Australia
Author: David Simmons