Divido announced on Tuesday morning that the company has secured £2.5 million in additional seed funding. The UK-based company works in the point of sale sector. The company acts as an alternative to consumers that allows them to purchase the goods they need while retailers are paid immediately.
The funding round was led by DN Capital and Mangrove Capital.
Divido also previously received £200,000 from the UK in the form of a grant. Consumers will use the company as a form of payment in which their purchases will be financed much like a loan. The company uses a marketplace which will allow for lenders to compete and offer financing to Divido consumers.
The company also offers a 0% financing option.
Funds raised during the Divido’s recent round of funding will be used for product development and marketing. The marketplace allows for more options for consumers, cheaper rates and a better overall experience. Many retailers will offer funding through Visa or MasterCard, but the marketplace allows for small and large retailers to offer lending through a variety of sources.
The marketplace allows for up to £25,000 in funding for each individual transaction.
Three funding options are offered by Divido: 0% finance, deferred payment and credit. The company is a paperless solution that receives a kickback from lenders for each sale that is made through the company’s platform. A setup fee and monthly fees will also be charged to merchants that use the company’s platform.
Divido has over 100 retailers that use the company’s marketplace. Retailers benefit from receiving the money they need to continue their operations immediately from lenders. Smaller businesses that have a tight cash flow and can’t offer financing will be able to offer funding to consumers.
Christer Holloman, co-founder and CEO of Divido, was an integral force that helped launch Glassdoor.com in Europe.