The money came from a fully underwritten placement, the release states, and the firm was supported by existing and new CHESS Depositary Interest (CDI) holders.
The release states the money will go toward furthering Sezzle’s growth strategy and strengthening its balance sheet.
Sezzle CEO Charlie Youakim had a positive reaction to the news.
“…Sezzle is now in an even stronger position for all of its investors and very well placed to accelerate its growth strategy and undertake investment in initiatives to drive long-term value creation,” he said, according to the release.
Eligible Sezzle holders will also be able to acquire additional CDIs through a Security Purchase Plan (SPP).
Sezzle offers BNPL services in the form of letting customers access a new form of credit if they’ve had to forego the traditional kind. The company allows shoppers to make payments in four equal numbers across six weeks.
The company reached the 1 million user mark in February, PYMNTS reported. The company was at the half-million customer mark just a little under half a year before that in August 2019, and Youakim credited the rise to customers who knew how to be savvy and get the most out of their shopping experiences.
In addition, Sezzle announced around the same time that it had passed 10,000 merchants in partnership with its services.
Sezzle was also approved for a lending license by California’s Department of Business Oversight (DBO) in January. The license was initially denied due to the perception that the company had been operating without a license prior to that, but the DBO later approved it when Sezzle agreed to the state’s regulatory oversights, audits and rules.