Sezzle files draft documents for US IPO
The payments platform Sezzle said it confidentially submitted a draft registration statement for an initial public offering (IPO) to the United States Security and Exchange Commission, according to a press release.
The press release notes that neither the number of shares nor the price has been disclosed.
The IPO will likely take place after the SEC completes its review process, subject to market conditions.
Sezzle, which strives to provide Buy Now, Pay Later (BNPL) installment plans, touts instant approval and unaffected credit scores among its perks.
Sezzle recently announced plans to become a hub for “super apps” and handle all payments for its consumers after rival Square recently purchased Afterpay.
Sezzle CEO Charlie Youakim told PYMNTS that the idea is to continue offering products and become a one-stop-shop for various purchases. The company also wants to become a ramp for more traditional credit services.
BNPL’s services have been popular with consumers lately, with competition remaining high and appearing to remain so. Sezzle will face competition from Square as well as PayPal and others. And there are also the looming challenges posed by other companies like Apple, which is said to be rolling out its own BNPL service.
According to Youakim, what sets Sezzle apart could be his approach to credit scoring, in which he gives credit to people who might otherwise not qualify.
Read more: Sezgle CEO Responds to Square BNPL Deal: We’ll Handle All Ways Consumers Pay
Sezzle reportedly planned an IPO earlier in 2021, as his growth kept growing.
“The timing, number of common shares to be offered, use of the proceeds and the price of the proposed initial public offering have not yet been determined,” Sezdle said in the announcement, per PYMNTS.
Sezzle said in his results at the time that there were nearly 400,000 active customers added during the first quarter of the year.
In addition, the top 10% of its customers complete around 49 transactions per year.
See more : Sezzle plans US IPO amid growing active traders and consumers