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Sunday, September 24, 2023

Danish startup raised €4M in seed round for its new version of BNPL

Aarhus-based financial software developer Anyday offered a new way for “buy now, pay later” services and raised 4 million euros in the seed round. The round was led by Finnish VC Inventure. The Danish company changed the structure of a split payment system and let the stores carry the burden of their potential customers. The platform provides interest-free financial solutions to the customers and only charges a modest fee to the online stores on the platform.

It sounds ethically wrong but actually online store owners benefit from this as well. This system may tend to bring more customers to the stores since the charm of the new system can attract them into the shops. This huge funding will be use of expanding more across the Nordic region for the Danish startup. Additionally, the company will be able to take it to the next level by increasing the payment options even for the in-store customers.

Danish fintech Anyday to enter Scandinavian market with new generation of split payment solution

Danish fintech Anyday raises a €4m Seed led by Inventure to give customers a high credit line with absolutely no fees or interest on their purchases. The capital is to be used for introducing Anyday’s split payment concept for the Scandinavian market and implementing the service for in-stores.

Last year, Anyday introduced a new concept for split payment with no fee of interest, no fees and a high credit line for the end customer, where the payment is split into four, and with 25% of the amount paid up front. The Anyday concept comes as an unique alternative to related products known as Buy Now, Pay Later.

After a successful 2021, Anyday now has raised €4m from existing and new investors to invest in expanding the business further.

Stepping in as new lead investor is the Finnish-based venture fund Inventure, who has followed the fintech environment in recent years.

Anyday, Inventure, Tuomas Kosonen“Anyday stands out with a proven track record that both the merchants and consumers are ready for a new generation of split payment solutions based on a fair and simple concept. This could take the debit economy a huge step forward, and that is why we support further roll-out,” says Tuomas Kosonen, Partner at Inventure.

Introducing concept in Scandinavia

More than 1,000 merchants have already joined Anyday, and more than 20,000 customers have used Anyday, who is now looking towards the Nordic countries for merchants to integrate the split payment concept.

Card and app to support in-store

Today, the Anyday payment solution is available for Danish webshops. As a vital part of the growth plan, Anydays service is to be introduced for payment at in-stores in two ways: as a virtual credit card and an app with the payment technology, so that consumers are presented with the option to split the payment, when they pay in in-stores.

Backing Anyday to build BNPL V2

Anyday’s smooth BNPL check-out process offers users the ability to pay for purchases in four-installments. That sounds familiar, but the special sauce is that users pay absolutely no interest. Consumers pay just the normal price of the item over time, while the merchants pay a modest fee- just like any other payment solution, but with a huge increase in shoppers converting into paying customers. 

As of today, Anyday has 1,000 merchants and more than 20,000 customers across Denmark, but the expansion boost is yet to come — with this funding round, Anyday will expand across the Nordics!

Anyday, Jonas Overgaard“We had a hockey stick increase in underlying sales in the fourth quarter of ‘21, and we believe to have the technology and business model that will be part of drawing the future structure of split payment, where end consumers never pay interests or additional fees. The onboarding of Inventure gives us a really good starting point to introduce Anyday on the Scandinavian market,” says Jonas Overgaard, CEO and founder of Anyday.

BNPL 2.0

If you look at the BNPL landscape in Europe, you might think there are one or two giant players and the market is totally captured. 

However, the current BNPL 1.0 players built their empire on high fees to consumers. Their entire business model relies on it, and these giants can’t adapt when a more flexible and fair solution like Anyday comes around. Inventure sees Anyday taking over Europe fast. 

While BNPL has been around for a long time (going back to the days of layaway), the VC firm sees it still in the very early days of growth. Looking at the pure numbers, global ecommerce BNPL transactions account for only ~2.1%, while >30% is still transacted by credit cards. That’s a big gap considering credit card issuance is currently declining big time!

Speaking broadly, there’s been a generational shift by Millennials and Gen Z away from traditional credit and towards flexible, simple and transparent solutions, as well as from unethical ways to pay attached to large APR.

One more important factor for Anyday is that they’ve built strong relationships with financial institutions. On the back end, Anyday has found an appealing solution to make debt scalable, which enables them to grow faster without the need of raising debt.

The excitement

  • Disruption of existing BNPL business models by implementing a consumer-centric and fair offering.
  • The massive growth of the e-commerce market – Global ecommerce space is valued at ~€4.4tn, whereof only ~2% are globally transacted by BNPL services.
  • The global trend of more flexible payment solutions and actively participating on the decline of credit cards, through the ongoing generational shift.
  • Established a scalable debt model.

The Team

The Anyday team was build around Viabill dropout Jonas Overgaard. Jonas impressed us throughout the whole conversations by his “hustler” mentality and industry expertise. 

Together, the team possesses the technical domain expertise, a deep process understanding, and the relationships across the industry necessary to establish the next BNPL giant in Europe. 

What’s next?

Next on the Agenda for Anyday is the expansion to the remaining Nordics, in addition its services is to be introduced for payment at in-stores in two ways: as a virtual credit card and an app with the payment technology, so that consumers are presented with the option to split the payment, when they pay in in-stores.

“We want to become an omni-channel service for our merchant partners not limited to webshops only, but also as a payment alternative at in-stores to give the merchants the opportunity to offer more payment solutions. The onboarding process for webshops works well, and we are looking forward to introducing our concept to the in-stores ,” says Jonas Overgaard.

Click here to read more funding news.

Nurcin Metingil
Nurcin Metingil
A permanent student, a passionate first reader and nowadays doing master’s degree in Publishing Management. Beside these, I am up for games! I have been playing games since I was 6. Now, I am whispering "Business. Business. Numbers. Is this working?"

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