Buy-Now-Pay-Later player BizPay lays off 30 percent of staff

The buy now, pay later provider is saying goodbye to much of its workforce, but continues to seek $25 million in funding.

A buy now pay later provider with offices in Sydney has laid off 30 per cent of its workforce, blaming market conditions for the massive cutbacks in staff.

Still, the BizPay company is currently trying to raise $25 million in funding and has partially completed it.

According to reports, it has already attracted $45 million in funding since its launch in late 2019.

The affected staff must be ready at the company by Friday, although the company has not disclosed how many people have been laid off.

BizPay is a form of BNPL used by other companies to pay invoices from providers such as lawyers, accountants or consultants in four monthly installments and it charges companies a fee.

Co-founder and CEO David Price said the job cuts were a “strategic decision”.

“Due to the uncertainty in global markets, especially the technical sector, and the current market conditions, we have made the strategic decision to streamline operations and our workforce to support BizPay’s next growth phase,” he told ouch.

He added that new automated processes had improved efficiency and that a “leaner and more flexible workforce” was needed to improve competitiveness in the space.

“Unfortunately, as part of this process, we have had to make some reductions in our workforce to adapt to these changes,” he said.

Earlier this year, experts predicted a potential “bloodbath” for the “Buy Now, Pay Later” sector as providers burn cash, bad debts soar and customers withdraw from using the service – a model they say is unsustainable.

In April, Australian buy now pay later technology giant Afterpay posted a staggering mid-year loss of $345.5 million over the six months to December 31, 2021.

It was a significant drop from its previous half-year results, where it lost $79.2 million in the first half of 2021, meaning the company’s losses are up 336 percent.

Meanwhile, shares in Zip Co have fallen a whopping 72 percent this year.

BizPay had previously floated the option of going through an initial public offering (IPO) to the Australian stock market and in April last year it was estimated to hit a market cap of $400 million, the Australian Financial Review reported.

Mr Price said it is working on the timing and size of the current increase.

“In terms of our capital increase, we are working closely with our investment bankers on the timing and size of the increase,” he said.

“We have successfully raised some of the money; however, it is a challenging market, especially for fintechs. We believe the measures we have taken and the automation capabilities will be well received by the market and support us in scaling the business.”

In March, BizPay said it had achieved significant growth with more than 10-fold higher sales over the past year, the report reported. Retail

“The payments ecosystem is accelerating at lightning speed and we are excited to capitalize on this growth in 2022…”, Mr Price told the publication.

“By bringing a unique and disruptive product to an untapped market, we have made the company successful both locally and globally. With an innovative AI-driven approach, supported by a talented team, we are committed to continuing to deliver outstanding results on our IPO.”

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