BNPL Firm Sezzle Reducing Non-U.S. Operations to Cut Costs

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By Stuart Condie
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SYDNEY–Sezzle Inc. expects to cut annual costs by about another $7 million by pulling back on its non-US operations ahead of its planned acquisition by rival buy-now-pay-later operator Zip Co.

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The Minneapolis-based payments firm on Friday said that it would scale back operations in Europe to essential requirements, cease payments processing in India, and spin off its Brazil operation to local management, while maintaining a minority stake.

The cost savings are in addition to $10 million from cutting staff that Sezzle announced in March. Sezzle on Friday said it expects total annual savings to total at least $17 million.

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The Australia-listed firm reported total income for its fiscal first quarter of $27.6 million, up 6.2% on-year. The value of transactions on its platform rose by 20% on-year to $450.5 million.

Australia’s Zip agreed in February to acquire Sezzle in an all-share deal that at the time valued the smaller player at about $348.5 million. Zip’s shares have since lost 54% of their value.

Write to Stuart Condie at [email protected]

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Credit: www.marketwatch.com /

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