Baringa and EY advise on funding round of FinTech firm DivideBuy
Consulting firms Baringa and EY were among the professional services firms to have advised on investment in FinTech company DivideBuy. The firms were engaged by Souter Investments to provide commercial and financial support, respectively.
Souter Investments is the family investment office of Sir Brian Souter, co-founder and Chairman of Stagecoach Group. The entity makes investments across a broad range of asset classes, with a primary focus on private equity and a portfolio of more than 30 direct private equity investments. Some of the group’s investments in 2018 included Broadway Partners, DMC Canotec and Pet Centar, whilst Souter Investments also recently announced the successful sales of First Scottish Group and OnniBus.com.
Now, Souter Investments has agreed a deal to invest in Stoke-on-Trent-based financial firm DivideBuy. Founded in 2012, the company currently has partnerships with over 400 retailers, and provides interest-free credit to more than 300,000 account holders. Following the investment round from Souter Investments, alongside Perscitus and debt funding from Shawbrook Bank and Paragon Bank, it will look to increase its reach significantly in the next three years.
DivideBuy will be able to offer many more UK retailers access to its innovative technology, which allows retailers to provide interest-free credit as a purchasing option for their customers. The company has built its own market leading technology which it uses to underwrite 100% of its own lending, allowing for full control and transparency to retailer partners and consumers. The FinTech solution also integrates seamlessly with retailers’ websites and back office infrastructure, meaning customers can spread the cost of their purchases in under 60 seconds, with 96% getting an approval decision.
Souter Investment was advised on the transaction by a cross-industry team of professional services firms. While Big Four firm EY provided financial services, and consultancy Baringa gave commercial advice, Dickson Minto provided legal services and Crosslake provided digital advisory work.
Commenting on the news, DivideBuy Co-Founders Max Thowless-Reeves and Rob Flowers said, “This investment by leading private equity players and banks in DivideBuy reflects the value that our business model and technology creates for retailers and customers and our progress as an organisation.”
Calum Cusiter, Investment Director at Souter Investments, added, “DivideBuy represents an exciting opportunity for Souter Investments to support a fast growing and innovative FinTech business with a highly backable and passionate management team. We look forward to working with Rob and his team during the next phase of growth.” Calum will join the board following the transaction.
Related: Baringa, EY and Mason Advisory named top UK employers.
