Like Zip Co for B2B: Butn closes $12.5m pre-IPO raise

Like Zip Co for B2B: Butn closes $12.5m pre-IPO raise

A $12.5 million capital raise will boost business to business (B2B) transaction funder Butn's ambitions to list on the Australian Stock Exchange (ASX: ASX), as it signs a major agreement with food delivery platform EASI.

Announced today, Butn closed a $12.5 million pre-IPO capital raise led by Canaccord Genuity, with funds to be used to build out its technology stack and product development ahead of a mid-2021 listing.

The major funding round for Butn was oversubscribed and backed by investors including Wilson Asset Management (ASX: WAM) and Regal Funds (ASX: RF1).

"This raise allows us to scale our business so that even more Australian small business owners can free their finances from legacy payment cycles," says founder Rael Ross, the winner of the 2020 Australian Young Entrepreneur Award in the Digital Disruptor category.

Butn operates a platform by which, in just one minute, any business in Australia can be funded for any product they may need, all with the push of a button.

By integrating directly on the transaction platforms of clients, and with simple five-minute setup for customers, Butn can be deployed almost anywhere.

Think Zip Co or Afterpay, but for B2B transactions.

Since its establishment in 2018, Butn has funded more than half a billion dollars' worth of goods and services for Australian businesses large and small, and it's showing no sign of slowing down.

In 2020 alone $166.6 million was lent to businesses, with the service attracting a significant pool of potential end users from around Australia.

Butn partners with food delivery platform EASI

News of the pre-IPO capital raise comes alongside Butn's announcement of a partnership with food delivery platform EASI.

The partnership will see more than 25,000 food delivery riders and 20,000 restaurant owners benefit from same-day pay, reducing the wait time for payments which can sometimes last for up to two weeks.

To go live in Australia in March, and to be rolled out in other countries in the months following, Butn hopes to provide the sector with improved cash flow and certainty as part of the deal - something restaurateurs will relish after being hit hard during the COVID-19 pandemic.

Ross said the partnership would advance the company's mission to make funding faster, easier and more accessible. 

"Integrating Butn into EASI's vender and driver payments systems means restaurants and drivers can gain payments on the same day; speeding up their own settlements and enabling them to access money on their own terms, at the time of their choosing," Ross said.

EASI Australia managing director Linda Liu (pictured left), says the partnership will help recover Australia's hospitality industry after being hit hard by COVID-19 by providing EASI drivers and restaurant partners with increased financial flexibility.

"As a technology company, we are constantly looking for innovations that will help our drivers, merchants and customers," says Liu.

"This partnership is a world first and we look forward to our continued success servicing the Australian market with the added benefits Butn has to offer."

In November last year EASI linked up with gig economy insurance startup Upcover, tapping into the latter's tailored pay-as-you-go insurance products.

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