A year after completing its last funding round, Blispay is out seeking more capital, three sources said.
The Baltimore fintech company is targeting $30 million for a Series B round, two of the people said.
Blispay works with small- and medium-sized businesses to help shoppers make large purchases, press reports say.
The company provides financing plans to retail customers who want to make purchases of at least $199. Consumers sign up using the Blispay app and have six months to pay the bill. Blispay makes money when the customers don’t pay up within a six-month period and are subject to 19.99 percent interest, TechCrunch reported.
Blispay has raised more than $25 million, PitchBook said. The company’s A round collected $12 million in February 2017, while a seed round in 2016 raised $12.75 million. Investors include Camden Partners, F-Prime Capital, Accomplice, New Enterprise Associates and First Mark Capital.
Point-of-sale lenders like Greensky and Affirm have been a bright spot in the generally troubled market for alternative lenders, one VC said.
Greensky, which provides a platform to help retailers and home contractors offer loans to customers, has filed confidentially to go public, the Wall Street Journal reported April 2. Greensky could seek to raise $5 billion, the story said.
Affirm, meanwhile, collected $200 million in a Series E led by GIC in December, valuing the company at $1.5 billion to $2 billion, TechCrunch reported.
By comparison, the Federal Trade Commission sued Lending Club in April, alleging that the online lender hid fees from consumers and charged borrowers even after they paid off loans.
While Blispay lines up with other POS lenders, it’s not obvious what their differentiation is, the VC said. “They just look like a more modern Synchrony or Alliance Data,” the VC said. “[Blispay] will have to prove that they have something proprietary.”
Executives for Blispay declined comment. Camden, F-Prime, Accomplice and NEA could not be reached for comment.
Action Item: For more information contact Blispay CEO and Founder Greg Lisiewski by calling +1 302-897-3237
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