Victory Park Capital strengthens alliance with Zip

Featured News

Victory Park Capital Advisors, an established credit manager and global alternative investment firm, has closed a refinancing agreement for a $225m debt facility with Zip, a renowned player in the digital retail finance and payments industries.

This strategic financial collaboration is set to bolster Zip’s US receivables, marking a crucial step in the expansion of its operations within the American market.

Founded in Australia in 2013, Zip has emerged as a global FinTech powerhouse, offering innovative, customer-focused products and services that bridge the gap between consumers and merchants. The company operates chiefly in Australia, New Zealand, and the Americas, providing versatile point-of-sale payment solutions and connecting millions of customers with a vast network of merchants. This new injection of funds is expected to fuel Zip’s strategic initiatives, enhancing its comprehensive suite of consumer financing solutions and driving the growth of its business platform.

The partnership between Victory Park Capital and Zip is not new; it dates back to 2015, signifying a long-standing, fruitful relationship. The journey began with a A$108m asset-backed warehouse facility, which subsequently expanded to A$200m. In 2020, another milestone was achieved when the two firms closed a A$100m debt facility, aimed at funding receivables and fortifying the Zip Business platform.

Zip’s Co-founder and U.S. CEO, Larry Diamond, expressed his enthusiasm about the renewed collaboration with VPC, emphasising the transaction’s significance in reinforcing Zip’s presence in the U.S. market.

He said, “We are thrilled to announce our renewed collaboration with VPC, a cornerstone investor in Zip since our early days. This pivotal transaction marks a significant step in bolstering Zip’s expansion within the U.S. market. As we refine and broaden our portfolio of consumer financing solutions, the three-year deal provides us with both the strategic timing and the flexibility needed to spearhead innovation in both our new and existing product lines. This partnership not only underscores our shared vision for market leadership but also cements our commitment to delivering unparalleled financial products to our American customers.”

Finance FINTECH Payment thefintech

Related Posts