The Laybuy Group Holdings Limited (ASX: LBY) share price has stormed higher on its first day of trading on the ASX.
The Laybuy share price finished the day on $2.08, 47% above the IPO listing price of $1.41
The buy now, pay later (BNPL) company went as high as $2.30 in early morning trade, before settling back.
What does Laybuy do?
Launched in 2017, Laybuy has been growing rapidly in Australia, New Zealand and the UK. The fintech company has partnered with over 6,000 retail merchants to offer consumers a BNPL service. The integrated payment platform allows customers to make a purchase and pay it off over 6 weekly instalments without incurring interest.
What did management say?
Co-founder and managing director Gary Rohloff was upbeat about the company’s achievements.
He commented:
Laybuy was established to help consumers avoid the trap of high interest credit cards and to help families better manage their budgets by allowing them to stagger their purchase payments. We are all very proud of what we have achieved to date.
With this support from our new shareholders, the board, management and the entire Laybuy team are committed to growing the value of Laybuy as we continue to focus on achieving our goal of creating a ubiquitous global brand.
Financial snapshot
For the full-year ending on 30 June, Laybuy had 5,672 active merchants and 473,000 customers. The company processed over NZ$116 million gross merchandise value (GMV) of sales for the June quarter. Laybuy anticipates around NZ$460 million for the full-year.
The company has secured a NZ$20 million debt facility to fund its New Zealand and Australian operations and a £80 million debt facility to fund growth in the UK.
Outlook
Since the start of FY21, Laybuy has recorded NZ$86.7 million GMV of sales across July and August. This represents a growth of 161% compared to the prior corresponding period. Active merchants at the end of August totalled 6,180 and active customers totalled 542,000.
The company has continued to develop its pipeline, bringing more retailers onboard, and aims to continue capturing highly recognised retail brands and small-to-medium enterprise merchants.
The fintech is hoping to achieve a growth GMV of NZ$4 billion (more than 8 times the annualised GMV for Laybuy) in the future.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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