SHANGHAI, Nov. 16, 2020 /PRNewswire/ — The Australian-based investment company, which is set up to collaborate with and counts Afterpay as its largest shareholder, has completed a USD 10 million investment in Happay, China’s first BNPL (Buy Now Pay Later) platform, taking a 20% stake and valuing Happay at USD 50 million. This investment is a part of AP Ventures’ strategy of investing in high growth, scalable opportunities.
Happay is the first zero-interest credit payment product in China with "1/4 down payment, four periods free of interest, and zero fees". In August, Happay entered shopping malls within the Mixc system in Shenzhen and Hangzhou. Shenzhen and Hangzhou have a large younger consumer demographic which is the primary focus for Happay. The Mixc brand has more than 50 shopping centers in China, with an annual turnover of more than RMB 100 billion. It is the most successful, well-known and high-end mall chain in China.
AP Ventures decided to invest USD 10 million in Happay following the success of Happay’s initial launch based on its strong growth metrics and traction in the market.
"We see this as an enormous opportunity," said Hein Vogel, CEO of AP Ventures. "BNPL is booming in Australia and the US, but there aren’t many offline solutions in China that resemble Afterpay. We see China as an attractive market and are excited to partner with Happay."
Happay has built a solution which can be embraced by shopping malls, merchants and consumers by targeting in-store solutions for shopping malls. The ease of use and deployment of the solution is attractive to merchants and its interest-free nature with no upfront fees makes it an appealing solution for consumers.
Chen Jin, Founder and CEO of Happay, has more than 20 years of experience in the commercial real estate and retail industry, and the core team members have significant experience in this field.
After the capital raise, Happay is rapidly expanding its business and operating model across China’s tier one cities, including launching into key shopping centers such as Shenzhen Mixc World, Shenzhen Coastal City, Shenzhen KingGlory Plaza, Mixc One in Xiaoshan in Hangzhou, and Lanzhou Center, the largest mall in northwest China.
By the end of October, within two months of launch, Happay has nearly 1,000 stores partnering with it. It has partnered with leading international and domestic brands such as MO&Co, bebe, Devialet, etc. Meanwhile, Happay has also expanded more broadly into adjacent sectors including children’s education, fitness, medical beauty, dentistry, etc., including strategic relationships with chain brands, such as Meland and GYMBOREE.
According to the data, Happay has helped more than 80% of its partner brand stores to increase customer transaction value by 30%. 25% of the stores that have partnered with Happay have seen customer transaction value increase by over 100%. The outstanding results have attracted positive feedback from retailers and brands.
Happay’s pace of growth combined with the size of the Chinese market with a population of over 1.4bn has strengthened its desire to replicate Afterpay’s success in the Australian market. Happay is excited about its future and Happay’s prospects in the changing retail landscape.