• Zip is getting ready for a more aggressive global expansion, eyeing the US, Middle East, Europe, and the UK.
• On Thursday, it announced it had raised $120 million from institutional investors with as much as $30 million more to come from shareholders.
• Much of that money will be used to grow QuadPay in the US, while also entering the United Arab Emirates and EU via stakes in Spotii and Twisto respectively.
• Visit Business Insider Australia’s homepage for more stories.

Australian buy now, pay later companies know their future lies overseas as Zip doubles down.

On Thursday, Zip revealed it had completed an institutional $120 million funding round, with an additional $30 million purchase ahead to fund its international expansion.

“The additional growth capital will enable Zip to capitalise on the successful acquisition of QuadPay in the US, scale Zip’s operations in the UK, lead the active pursuit of global growth opportunities and support the launch of Zip Business,” CEO Larry Diamnond said, noting the

The lion’s share, expected to be up to $85 million, will be funnelled into QuadPay, with the United States ranking as the number one battleground for buy now, pay later growth. With 2.8 million active users in November, the venture is already growing rapidly, with these extra dollars to pay for marketing, as well as acquiring new customers and merchants.

Zip’s UK foothold will receive another $15 million, but it is Zip’s aspirations beyond that which are the most telling. Like Afterpay, it’s investigating new markets that are yet to be saturated by global players.

Much of the remaining $30 million – $50 million will be splashed growing its global footprint. Zip will enter the Middle East for the first time via a stake in Spotii in the United Arab Emirates, and enter the European Union (EU) by taking equity in Twisto.

The deals signals there could be complete acquisitions to come, with Zip taking a stake in QuadPay before buying it outright earlier this year, in a move that pleased analysts.

“With respect to the new regions, we think partnerships and strategic investments are a logical approach to longer-term success, being able to share knowledge and leverage existing capabilities and licensing from teams with on the ground experience, before committing significant amounts of capital,” Tim Piper, Royal Bank of Canada capital markets analyst, wrote in a research note issued to Business Insider Australia.

“We think investment into gaining market share as quickly as possible in all regions is the right move given the market opportunity and competitive set.”

A final $12 million is expected to more aggressively target small and medium businesses via partnerships such as those it has already with eBay and Facebook.

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