Pace plans to use the funds to fuel its expansion into new Asian markets. Here are the top-line bullets you need to know.
Pace, a buy now pay later (BNPL) service provider, has raised $40M in a Series A round. The round drew participation from Marubeni Ventures, Alpha JWC Ventures, UOB Venture Management, and AppWorks Ventures, among others.
How’s the company performing?
- Singapore-based Pace offers BNPL services that allow shoppers to pay their bills in 3 interest-free installments over a period of 60 days.
- Since its inception earlier this year, Pace Enterprise has set up 3,000 point-of-sale locations across Asia and experienced a 25% increase in sales.
- The company expects to generate $180M in revenue in 2021.
- Pace maintains operations across Singapore, Hong Kong, Thailand, and Malaysia.
Source: Pace
Why does the market matter?
- The global digital lending platform market is projected to reach a value of $27.1B by 2028, growing at a CAGR of 18.13%, according to Verified Market Research.
- Today, BNPL accounts for a small portion of the overall annual spending on payment cards (including credit, debit, and prepaid cards) — which currently sits at $8T. However, BNPL is at an inflection point. By 2025, the global BNPL industry is expected to grow 10–15x its current volume, topping $1T in annual gross merchandise volume by some estimates. This growth trajectory has incumbents paying close attention and increasing their efforts to improve the digital user experience.
- There have been major acquisitions in this space as well, such as Square acquiring AfterPay for $29B.
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