Sezzle predicting big growth in 2021
U.S.-based Sezzle last week reported rapid sales growth in its 2020 results and is predicting more to come, as it seeks to challenge Afterpay’s strong positioning in the United States.
The record performance saw 2020 underlying merchant fees increase 250% year-on-year to US$856.4 million. Sezzle is expecting this momentum to continue with the challenger predicting to be making annualised merchant sales of US$2.5 billion by the end of 2021.
While Sezzle's current market cap of about $1 billion, is dwarfed by Afterpay's $38 billion, Afterpay reported sales in the December half were $9.8 billion.
Sezzle added over 1.3 million Active Consumers in 2020 with almost half a million in the last quarter alone. Afterpay currently has more than 8 million American customers.
The company reported strong positive trends have continued in January 2021 with Active Consumers already reaching 2.4 million, Active Merchants have risen to 29K, while UMS also represented a record month and was 65.1% above the average monthly pace for 2020.
The results come shortly after Sezzle announced a new US$250 million receivables funding facility with Goldman Sachs to support the expansion of the business in the US and Canada.
“We are excited about the momentum in our business reflected in the velocity of signups for both consumers and merchants. 2021 is off to a good start” stated Sezzle Executive Chairman and CEO Charlie Youakim.