Swedish buy now, pay later (BNPL) firm Treyd has raised $10.5 million in a Series A round, UKTN reported Wednesday (May 18).
The funding will help the company expand to the U.K. and operate out of Stockholm and London in a manner similar to BNPL firm Klarna.
Treyd works on BNPL services for international supply chains, and pays suppliers while giving companies 120 days to pay the balance, helping free up capital for a business so it can work on growth.
The U.K. was chosen as the firm’s base because of Treyd’s view that that country is “a leader” and strikes a balance between “being open for business and protecting consumers,” while also having strong regulation, data and eCommerce protection.
“We have proven that B2B pay-later works in Sweden, and this round allows us to take that idea to the world,” Treyd CEO and co-founder Peter Beckman said. “Treyd will be able to free up capital and create new opportunities for thousands instead of hundreds of companies.”
All of it comes as the U.K. is looking more critically at the BNPL practices, with 17 million customers in the country using the service at least once by the end of last year. Households in the country have been warned about using BNPL financing for basic things like covering soaring energy costs, the report noted.
However, BNPL has been seen globally as a new trend, especially as the economy has been in flux because of the pandemic.
In other BNPL news, PYMNTS wrote that Mollie, an Amsterdam-based payments platform, will work alongside in3, an Eindhoven-based BNPL firm, to offer the installment payments.
Read more: Mollie Teams With in3 for BNPL in the Netherlands
According to Mollie Chief Commercial Officer Ken Serdons, the goal is to offer shoppers a flexible way to pay for whatever it is they need.
“BNPL can increase conversion rates and the average order value of purchases by allowing for more flexibility,” Serdons said.
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