Weaver Fintech, a new division of omni-channel retailer Homechoice International (HiL), has made its first acquisition, purchasing an 85 percent share in buy-now-pay-later (BNPL) startup PayJustNow, based in Cape Town.
HiL is an investment holding company with subsidiaries focused on fintech and omni-channel retail. It is a Mauritius-based company that trades on the Johannesburg Stock Exchange.
“Weaver Fintech’s recognition through their investment and funding is an affirmation that what we set out to do holds real value. Retailers that we recently on-boarded include the likes of Edgars, Puma, HP and Cape Union Mart Group, and retailers that use BNPL programmes seeing incremental salesboosts of up to 30%, and an increase in average basket size of up to 35%,’’ PayJustNow’s founder and CEO, Craig Newborn said.
Why The Acquisition
According to a statement, the substantial investment will let HiL continue to grow in the booming BNPL market.
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The BNPL industry is booming both domestically and internationally. Although it only accounts for 2% of the worldwide market, BNPL is predicted to generate roughly $100 billion in retail sales in 2021, up from $24 billion in 2020 and $20 billion in 2019, according to the business.
The investment in PayJustNow marks Weaver Fintech’s entry into the payments industry, as well as providing funds for the Cape Town-based startup to pursue its growth strategy, according to the company.
Newborn says the investment creates potential for the fintech company, allowing it to expand and develop new products to better serve consumers and merchants.
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HiL recently changed the name of its Mauritian financial services subsidiary to Weaver Fintech, which will house the company’s fintech operations. Through its FinChoice and PayJustNow brands, Weaver Fintech provides personal lending, insurance, payments, and value-added services via digital platforms.
The retailer’s aim, according to the company, is to establish and buy consumer fintech companies that generate growth through product innovation and customer-driven analytics.
A Look At What PayJustNow Does
PayJustNow, which was founded in 2019, claims to have experienced tremendous consumer and online merchant growth, with 180 000 customers signed up and its platform available at over 2 500 points of sale.
The BNPL system from PayJustNow analyzes shopper affordability, allowing customers to make purchases and pay for them later. It then sets up automated deductions and sends out reminders to ensure that customers don’t forget to pay.
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The company claims to be the largest of its sort in Southern Africa, with over 1000 stores selling its wares.
PayJustNow acquired PayJustNow acquired
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer