Livewire – Buy Now, Gain Later: Afterpay or Zip

01 Mar 2021

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Afterpay’s announcement of a capital raise of up to $1.5 billion may seem huge, but it’s unlikely to be the last big cap raise in the Buy Now Pay Later sector. When you’re in the business of lending, high growth means high capital requirements, and the growth for Afterpay and Zip has been nothing short of astronomical. Both companies recently released results, with Afterpay’s income rising by 108% while Zip’s jumped 131% compared to the prior corresponding period.

Following the results, I got in touch with Dean Fergie from Cyan Investment Management and Jun Bei Liu from Tribeca Investment Partners to get their views on the two companies. We discuss the Afterpay capital raising and its significance for shareholders, the most important points from each company’s result, and they each tell us which of the two companies they’d prefer to own.