Sunbit Secures US$310m Debt Warehouse Facility led by Citi

Sunbit, the fast-growing Buy Now Pay Later (BNPL) provider has raised a significant US$310m in a debt warehouse facility led by Citi Group with participation from Ares Management.

The fintech aims to use these funds to expand its BNPL offering. Today, 40% of Sunbit’s market is in BNPL services for auto repair, and it is growing its patient financing services in dentistry.

Specifically, Sunbit will use its funds to expand access to the Sunbit Card, including through co-branded retail card partnerships. 

Sunbit: Expanding market access after tripling footprint

Indeed, new funding in Sunbit has been secured after the BNPL provider achieved triple-digit growth since its last venture round in 2021 when it raised US$130m at a valuation of US$1.1bn. 

By the end of 2023, Sunbit has grown its network to now serve over 2.6 million loan customers with over US$1bn per year in merchant transaction volume. 

The trust Sunbit has received from its customers has been paramount to its success, with one out of every three returning to use its BNPL services. The fintech has also seen a 60% acceptance rate for all customers offered its services at point of sale (POS).

With its new funding, Sunbit feels it can achieve its aim of reaching near-term profitability, sizeable growth and positive metrics across every measurement. 

Arad Levertov, CEO of Sunbit, says: “Today, millions of people choose Sunbit to manage their everyday needs and so much more. By offering virtually everyone a more transparent and fair alternative to what is currently in their wallet, we attract customers for life. 

“We take this trust seriously. Regardless of what markets we enter or what products we offer, every major decision will be tested against what matters most: how many customers we’re reaching, whether they come back to Sunbit, and how their experiences were. We thank Citi and Ares for their support in arranging this facility.”

Citi: The fintech funder

The Citi funding Sunbit has received points to a recent flurry in investment activity for the leading bank. 

Just last week, Citi provided a US$100m expanded secured credit facility to DailyPay as part of a US$175m funding round and joined a US$25M Series A funding round for UK fintech Zilo the week before. 

As some incumbent banks like HSBC look to tap into the fintech space by launching their own fintech products and services like Zing, it seems Citi would prefer to hedge its bets, investing in the success of multiple fintechs to drive profitability and strike meaningful third-party relationships for the future. 

Citi's funding in Sunbit comes amid a shakeup of its investment bank's senior ranks, with a sweeping overhaul taking place to fit new CEO Jane Fraser's organisational restructuring. Where Citi's investment in Sunbit fits into this shakeup, however, remains unclear. 

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