Aussie BNPL firm Zip reportedly set to retreat from 10 international markets
Aussie buy now, pay later (BNPL) firm Zip is reportedly kicking its global expansion plans into reverse, either by selling up or winding down operations in 10 of the 14 global markets it operates in.
Zip is reportedly exiting 10 markets following a slump in share price
According to Bloomberg, Zip is gearing up to exit India, the Philippines, Turkey, Czech Republic, South Africa and Poland. These markets join those the firm has already outlined for exit: Singapore, the UK, Mexico and the Middle East. Once all is said and done, Zip is set to be left with operations in Australia, New Zealand, the US and Canada.
The BNPL firm expects “significant” amounts of cash to roll in due to these exits, with positive cashflow expected by the first half of next year, CEO Larry Diamond tells Bloomberg.
Zip’s decision to exit these markets comes after the firm saw its stock plummet around 95% over the past two years, with the BNPL sector experiencing increasing competition, growing regulatory scrutiny and a drop in online spending post-pandemic.
Last year, Zip’s acquisition of US BNPL firm Sezzle was called off, with both firms mutually agreeing to terminate the deal.
The merger was initially announced earlier that year with Zip looking to boost its global expansion plans, in particular its foray into the US market.
