• ZIP a publically listed Australia-based buy now pay later (BNPL) company has fully acquired Dubai-based BNPL provider Spotii for $16.3 million. The acquisition comes almost six months after Zip invested in Spotii, when it acquired 20 per cent of its shares.
• Founded in January 2020, Spotii provides shoppers with the ability to defer payments or pay across four equal installments, with no cost or hidden fees.  Since its launch, Spotii has acquired more than 40,000 customers, and worked with 650 merchants.
• The deal helps Zip expand its global footprint and establish a presence in the Middle East where Spotii is already operational in UAE and KSA. It claims that total transaction volume has grown at an average of90 per cent month-on-month.
• Spotii is already integrated into Zip’s global Single Merchant Interface (SMI), which provides merchants with access to 11 countries across five continents.

Press release 

Leading global Buy Now Pay Later (BNPL) company,  Zip Co Limited (ASX: Z1P), today announced the full acquisition of Dubai-based BNPL provider Spotii. The strategic investment will see Zip build on its initial 20 per cent investment in Spotii (from December 2020), to purchase the remaining 80 per cent stake. 

Founded in January 2020, Spotii is a digital payments platform enabling users to Shop Now and Pay Later with zero interest or hidden fees. Since its launch, Spotii has acquired more than 40,000 customers. The platform gives United Arab Emirates (UAE) consumers the convenience of instalment payments for online purchases, with only 25 per cent payable at the time of purchase, instant approval and scheduled payments. Spotii is used by more than 650 merchants throughout the UAE and Kingdom of Saudi Arabian (KSA), including Jashanmal, Fitness Time and Danube Home. 

Zip has over 6.4 million customers and 45,300 merchants globally and the company’s expansion into the Middle East demonstrates its commitment to the global integration of BNPL. 

Spotii is already integrated into Zip’s global Single Merchant Interface (SMI), which provides merchants instant access to 11 countries across five continents and its extensive customer base to accelerate momentum, create jobs and drive growth for businesses across the Middle East. 

Key points

The Spotii acquisition establishes Zip as a leading player in the Middle East, with Spotii operational in the UAE and KSA, and poised to expand further. The strategic rationale of the transaction includes:

Fast-growing: the Middle East is one of the fastest-growing eCommerce regions globally, with online spend increasing at 25% annually.

Early traction: founded in 2020, Spotii has shown early traction with 650 merchants already integrated into the platform, including flagship regional brands such as Jashanmal and Danube Home. Total transaction volume has grown at an average of 90%+ month-on-month since inception.

Proprietary risk engine: Spotii’s proprietary risk algorithm has allowed the company to grow rapidly while maintaining low loss rates, and allowing it to integrate across a broad spectrum of industry verticals in a market with limited access to centralised third-party data sources.

Strong founding team: Spotii founders Anuscha Iqbal and Ziyaad Ahmed have over 30 years combined experience in payments, private equity, asset management and investment banking.

Zip Co-founder and Chief Executive Officer Larry Diamond said: “The Spotii acquisition is an important step in Zip’s global expansion and international strategy, with eCommerce in the Middle East on a significant upward trajectory. We have been working with Spotii since our initial investment in December 2020 to broaden our understanding of the BNPL opportunity in the region and have a number of exciting global merchants we are looking forward to activating in the coming months.  We also believe there is a large untapped opportunity to bring BNPL to emerging markets where cash on delivery remains a significant merchant challenge, and where the digitisation of retail accelerates.” 

Anuscha Ahmed, Spotii’s Co-Founder and CEO, said: “Since founding Spotii in early 2020, we’ve seen significant uptake of the platform by merchants and customers, highlighting the appetite and need for BNPL solutions in the MENA region. Joining forces with Zip – a global leader in the BNPL space –  will enable us to drive further growth by tapping into the company’s advanced technology and expertise. For merchants, it means greater access to customers outside the MENA region, while BNPL customers in the regional markets will have greater access to international merchants. Ultimately, it highlights the Middle East as a growing region for eCommerce and BNPL offerings.” 

Ziyaad Ahmed , Spotii’s Co-Founder and COO, said: “A world-leading BNPL company, Zip, has the operational expertise, technology and global understanding to help Spotii fuel the acceleration of the category in the Middle East. 

“The deal today will see us combine the might of a global BNPL player, with the specialism of the local market knowledge. We’ll work together to leverage the technology and analytical capabilities of Zip to drive merchant success and consumer growth both locally, and internationally”.