Pure Asset Management, a Sydney-based boutique asset manager for wholesale and sophisticated investors, is to provide new capital to Laybuy, the former ASX-listed buy-now-pay-later (BNPL) company.

Pure Asset Management will invest $1 million for about 7% of the company.  

A capital raising for Laybuy on the New Zealand Catalist platform closed at $NZ9.114 million ($8.48 million) on 31 January. More than 268 million shares were bought by 5,420 investors at an average of NZ3.4 cents each.

Auckland-based Laybuy listed on the ASX in September 2020 when the BNPL concept was flying high. Laybuy listed at $1.41-a-share. The shares rose to $230 on that first day valuing the company at close to $250 million.

But rising interest rates burst the BNPL bubble and last year Laybuy’s shareholders voted in favour of a proposal to delist the company with its shares trading at less than six cents.

In its last year as a listed company, Laybuy posted a loss of $51.6 million but, according to Pure Asset Management, it is now cashflow positive and moving toward profitability.

Laybuy has maintained a significant position in the New Zealand BNPL sector and some market share in Australia. According to the company, the BNPL concept remains popular, particularly with young consumers, and it expects the market to grow.

Image: BNPL remains popular, particularly with young consumers.