A high-net worth advice and wealth firm has helped raise $30 million for a homegrown AfterPay rival, in a private debt opportunity for its clients.
Escala Partners worked with corporate advisory firm Henslow to inject $30 million in debt and equity funding into buy-now-pay-later company PayRight.
Escala's head of fixed income markets Simon Dawkins said: "We were very happy to join forces with Henslow in helping PayRight structure and fund their lofty but measured growth plans in the Australian 'considered purchase' payment plan market."
"We have a number of UHNW clients who are looking to invest in this alternative lending space (both debt and equity), and we see PayRight as the perfect vehicle for us to make those investments."
PayRight differs from AfterPay in that it provides customer financing for bigger ticket items that are "more considered purchases rather than smaller impulse buys", such as home improvement, education, dental work, health, direct sales and beauty.
"[We practice] responsible lending and performs extensive identification and credit checks to ensure a customer's repayment capability. PayRight pays merchants upfront and in full on the same day and manages the customer's repayments," the company said.
The Melbourne-based company is eyeing a $300 billion opportunity in buy-now-pay-later payments. It is targeting $45 million in payments volume for FY19.
"On a more strategic mid to long term horizon we are looking at $200 million in volume annually. PayRight currently has over 1,000 merchants on our books with around 200 new merchants joining the platform every month and we are excited to see what the future holds," said PayRight co-founder and chief executive Myles Redward.
It will use the $30 million to expand internationally, deploy a custom-built platform, grow its loan book and to hire talent to support growth.