The funding will help Wisetack expand into verticals like auto repair, elective medical care, and legal services, among others. Here are the top-line bullets you need to know.
Wisetack, a BNPL startup, has raised $45M in a Series B funding round. The round drew participation from Insight Partners, Greylock Partners, and Bain Capital Ventures.
HOW’S THE COMPANY PERFORMING?
- San Francisco-based Wisetack is a technology company that helps in-person businesses offer financing to consumers via buy now, pay later (BNPL) services. It makes money by charging a processing fee to merchants and interest to consumers.
- By using its API suite, the company is able to embed financing options within multiple software platforms.
- Wisetack has partnered with Jobber, Housecall Pro, and Quik, among others.
WHY DOES THE MARKET MATTER?
- The fintech market is projected to grow at a CAGR of 23.41% to reach a value of $324B by 2026, according to Market Data Forecast.
- Today, BNPL accounts for a small portion of the overall spending on payment cards (including credit, debit, and prepaid cards) — the US sees around $8T in overall spending annually. However, BNPL is at an inflection point. By 2025, the global BNPL industry is expected to experience a 10-15x increase in spending volume, surpassing an estimated $1T in annual gross merchandise volume. This growth trajectory has attracted incumbent attention and moved them to improve the digital user experience.
- In 2021, BNPL players have set an annual funding record, as they have seen over $2.1B in equity funding across 20 deals. There have been major acquisitions in this space as well, such as Square acquiring AfterPay for $29B.