Buy now pay later outfit Butn gets set to list with food delivery deal
Buy now pay later outfit Butn is preparing for an initial public offering this year after signing a deal with food delivery giant Easi for delivery riders to access early payments.
Butn provides BNPL products for businesses and integrates directly into merchant, vendor and supplier payment systems to enable 15-minute transactions and has raised $12.5 million in preparation for listing on the Australian Securities Exchange this year.
Co-founder and chief executive Rael Ross said the partnership with Easi was a “landmark deal” for Butn which has facilitated $166.6 million in total lending for the 2020 financial year, up from $105.4 million in 2019.
“There’s so many small to medium enterprises, or independent contractors in the gig economy, no matter where it is everyone’s waiting for the money,” he said. “But it doesn’t make sense. If you’ve done the deal and you delivered the goods why shouldn’t you get that money instantly?”
Mr Ross said Easi’s 25,000 registered drivers and 20,000 merchants could opt-in to receive same-day payments rather than having to wait two weeks to get paid which is the case for Uber Eats, FoodPanda and Deliveroo drivers and merchants.
He said Butn wanted to get traction first with Easi before moving on to other food delivery platforms.
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