The Zip Co Ltd (ASX: Z1P) share price was a positive performer in September.
The buy now pay later (BNPL) provider’s shares rose 3.3% over the month.
This compares to a 2.6% decline by the S&P/ASX 200 Index (ASX: XJO) over the period.
Why did the Zip share price beat the market in September?
The Zip share price overcame weakness in the tech sector and rising short interest to record a decent gain in September.
This was driven by the release of a couple of positive announcements out of the growing BNPL provider.
The first was the release of its Retail Investor Day presentation. That presentation revealed the company has plans to launch several new products in the near term.
This includes savings accounts, rewards, and cryptocurrencies. The latter will see Zip allow users to buy, sell, hold, and even pay in cryptocurrencies.
What else was announced?
Also giving the Zip share price a boost was news that it has made a major strategic investment in India.
According to the release, Zip has agreed to make a strategic US$50 million investment in India-based BNPL operator ZestMoney.
ZestMoney was founded in 2015 and is now one of the largest and fastest growing BNPL platforms in India. It currently has 11 million registered users, over 10,000 online merchants on the platform, and a point of presence in over 75,000 physical stores.
The company notes that the India market is forecast to have US$300 billion+ in BNPL payment volume by FY 2026.
Much like its deal with Quadpay, which ultimately saw Zip acquire it in full, Zip has negotiated terms to increase its shareholding over time.
All in all, management believes this investment is consistent with its strategy to build a truly global BNPL business. And judging by the Zip share price performance, it appears as though the market agrees.
The post What happened for the Zip (ASX:Z1P) share price in September? appeared first on The Motley Fool Australia.
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More reading
- The best day in 10 months, and Zip’s Microsoft deal. Scott Phillips on Nine’s Late News
- ASX 200 (ASX:XJO) midday update: Zip shares rise on Microsoft deal, big four banks rebound
- Zip (ASX:Z1P) share price jumps on Microsoft integration agreement
- Why the Zip share price plunged 6% this morning
- Afterpay (ASX:APT) and Zip (ASX:Z1P) share price falls as Mastercard opens up the BNPL sector
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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