What Is Wisetack?
The BNPL startup was founded in 2018 by Bobby Tzekin (CEO), Kolya Klymenko (CTO), and Liz O’Donnell (COO), a group of experienced founders who have previously worked at payment and lending companies like PayPal and LendingClub. The entrepreneurs launched the buy now, pay later company because they wanted to “make it easy and affordable for in-person businesses to offer great financing options to their customers, and ultimately boost their sales,” Tzekin said in a statement.
The idea is that through its suite of APIs (application programming interface), the buy now, pay later startup embeds financing options into software platforms that are already used by thousands of businesses in their daily operations, allowing customers to pay later for in-person services like home and auto repair.
Money and Investors
The $19 million just announced by the BNPL company is the total it has fundraised to date. However, it’s notable that the seed and Series A rounds in which this money was accumulated actually closed in 2019 — the venture reporting was significantly delayed, as has been the case for many companies amid the coronavirus pandemic.
The startup is nonetheless worth watching and has been gaining momentum since the funding round. Furthermore, the list of star-studded investors disclosed by the BNPL company offers new promise about the prospects of the business. Greylock Partners, a leading Silicon Valley venture capital firm, led both rounds, while Bain Capital Ventures also took part in the fundraising.
Though the fundraising rounds aren’t exactly new, the buy now, pay later startup does have recent — and positive — developments to report. The business told TechCrunch that it saw its loan volume rise 20x between January of 2020 and January of 2021. “As the company generates revenues from merchants (loan processing costs), and consumer interest, it’s likely that its revenue scales with loan volume,” explained TechCrunch of the business, concluding: “If the relationship is even close to direct, Wisetack grew quite a lot last year.”
Another sign of the growth of the BNLP business: the startup said that the number of companies using Wisetack grew 25x last year to a number now in the “thousands.”
Wisetack has earned notable enthusiasm from investors and appears to be quickly scaling its BNPL business. The company has also benefited from tapping into recent and emerging trends like growth in the software-as-a-service (SaaS) segment of the technology industry, as well as the booming popularity of APIs. With the news of its closed fundraising rounds and its apparently successful past year, this business seems on track to have a bright future.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.