Wonga Group today announces that it has agreed the sale of BillPay, its German ecommerce business.
BillPay, which provides payment and credit services to retailers and consumers across Germany, Austria, Switzerland and the Netherlands, will be sold to Klarna, the Swedish ecommerce company.
BillPay employs 136 colleagues at its headquarters in Berlin and all will transfer as part of the agreed sale. The transaction is expected to complete in the second quarter of this year.
Wonga has owned BillPay since 2013, during which time the business has significantly expanded its offer and reach in the international ecommerce market. In 2015, BillPay became the first payments company in Germany to receive an operating licence from BaFin, the country's financial regulator.
Wonga will use the funds raised through the transaction to support the growth of its loan book as the business seeks to deliver sustainable growth and broaden its product set over time.
Tara Kneafsey, Group Chief Executive Officer of Wonga Group, said:
“This agreement is an important milestone for Wonga as it refocuses the group on our core consumer lending businesses and gives us the resources to drive sustainable growth across our markets.
"In early 2016 we set out to raise funds to both transform the business and to drive the growth of our loan book and, following the €30 million debt facility secured in April last year, this agreement means we are on track to achieve those goals.
"I would like to thank all of our colleagues at BillPay for their dedication and focus during this period."
NOTES TO EDITORS
Wonga Group is an international financial services business with a vision to pioneer and deliver smart financial products for under-served consumers and to put customers at the centre of everything it does.
The Group offers consumer finance products in the UK, Poland, South Africa, and Spain under the Wonga brand. In the UK, Wonga currently offers two products, a short term loan and a 3 month Flexi Loan. All applicants are credit checked and need to pass stringent lending and affordability criteria prior to approval, in line with Wonga’s commitment to being a responsible financial services provider. The UK business is regulated by the Financial Conduct Authority.
Jonathan Sibun (Tulchan Communications): 07779 999683 / email@example.com
Tulchan Communications press office: 020 7353 4200