ChargeAfter Wraps Up $44 Million in Series B Funding
ChargeAfter said it has closed on $44 million in Series B funding, which will help “expedite the onboarding of thousands of additional retailers to provide responsible financing to millions of shoppers worldwide — “anywhere they shop,” the company said.
The company is a buy now, pay later, or BNPL, consumer financing network that “provides shoppers with responsible, approved financing offers from multiple lenders with a single application” as well as offering financial institutions and banks “bespoke white-labeled BNPL platform services.”
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The round of funding was led by The Phoenix and included participation from Citi Ventures (Citigroup), Banco Bradesco and MUFG (Mitsubishi UFJ Financial Group) along with existing investors. “ChargeAfter’s new funding follows a strategic investment and partnership with Visa, bringing the company’s total amount raised to $60 million,” the company said in a statement.
ChargeAfter said its BNPL platform offers brands and retailers access to leading financing partners across the full-credit spectrum “with BNPL products such as card-based installments, split pay, long- and short-term installments, 0 percent APR financing, revolving credit, business-to-business financing, lease to own and more in a single integration.” For shoppers, the platform offers approved and personalized consumer financing “from multiple lenders through a single, quick application, wherever they shop,” the company said.
“With the distribution of credit streamlined into a single platform, retailers can easily implement ChargeAfter’s BNPL offering both online and in-store,” ChargeAfter said, adding that its growing lender network provides seamless integration to lenders “seeking to grow their customer base while expanding into new retail markets.”
ChargeAfter is positioning itself as a solution to a BNPL landscape that has a high decline rate for consumers. Meidad Sharon, chief executive officer and founder of ChargeAfter, said as BNPL services have “exploded in popularity in recent years, the marketplace often gives consumers limited options and up to a 70 percent decline rate. Investor interest in ChargeAfter is a testament to the growing need for a network-driven financing platform made for merchants, banks and financial institutions, as the industry rapidly shifts from a single lender, low-approval reality to a multilender experience where responsible lending and approvals rates upwards of 85 percent or more are the new norm.”
Sharon said this latest round of funding will enable the company to accelerate growth “and further diversify our global lender and merchant networks while scaling strategic partnerships by providing leading banks, lenders, financial institutions and industry partners a turnkey white label BNPL platform of their own.”
Boaz Morris, investment manager of venture capital at The Phoenix, said as consumer interest in BNPL accelerates, “it is critical for merchants, banks and financial institutions to offer tailored solutions that meet their customers’ evolving needs. ChargeAfter’s white-labeled, multilender platform represents the next generation in consumer lending and enables any business to seamlessly embed diverse credit solutions in their product offering.”
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