Sydney fintech BizPay sheds staff as it looks to raise $20 million

Sydney fintech BizPay is laying off nearly a third of its workforce amid an ongoing capital raise.

The business cashflow startup, which bills itself as a buy now, pay later (BNPL), letting companies pay invoices in four instalments, has shed 30% of its team, who finish up this week.

Founder and CEO David Price blaming global uncertainty and “current market conditions”.

The company has offices in Sydney and the US. It did not disclose how many staff are affected by the cuts.

In March BizPay declared it was “Australia’s fastest-growing” BNPL fintech for B2B transactions, while announcing it was on the hunt for $20 million in a Series C round.

The fintech is raising via a convertible note with a 32.5% discount to IPO and a 15% coupon.

It has already raised $45 million since its launch in late 2019.

There are currently 450 investors on the cap table, including Macquarie Bank, R2, Raven, SG Hiscock and Bennelong.

Price said in March that: “The payments ecosystem is accelerating at lightning speed, and we’re excited to tap into this growth in 2022″ with the new funding round, which is still underway.

“We’ve set up the business for success both locally and globally,” he said.

“With an innovative AI-led approach, supported by a talented team we’re keen to keep delivering outstanding results on our way to IPO.”

BizPay said it had more than a 10x increase in revenue over the last year.

The staff cuts come at a time when the BNPL sector is under pressure across the board, with shares in listed fintechs plummeting amid concerns over slowing growth and rising bad debts.