humm & Flexigroup Merge in Buy-Now-Pay-Later War
Buy-now-pay-later (BNPL) platform provider, Flexigroup and humm, have merged under one brand in order to heighten their onslaught in a competitive market dominated by Afterpay.
The news will see Flexigroup rebrand as ‘humm’, and raise around $140 million in fresh equity.
“On the back of our significant achievements to date, we see a clear rationale to unify and rebrand our business around humm as the final step of our simplification journey,” states Flexigroup Chief Executive, Rebecca James.
Humm has continued to expand its retail network, and has been used by brands such as IKEA, Retravision, Bing Lee, Betta Electrical and Jaycar.
The news comes after Flexigroup reported double digit volume growth in the last twelve months, with a notable 172% online growth within the BNPL niche.
Flexigroup has placed its commercial and leasing business in strategic review, as its sets sights on BNPL amid booming e-commerce demand during COVID19.
The platform also notched 37% consumer growth within the year – around 570,000 new retail customers.
“With the simplification of the business nearly complete, and a common credit decision platform in place across our core consumer product suite, we are ready to put our firepower into larger ticket buy now pay later, and expand our offering with humm90 and bundll (powered by humm),” says Ms James.
The platform has reportedly gained around 5,000 new retailers, with a single humm ecosystem said to offer cross-promotional opportunities and lower costs.
The re-branding of Flexigroup to humm will require a shareholder vote at it annual general meeting, with the ASX ticker ‘HUM’ reserved.