London-based fintech Fly Now Pay Later has secured $75 million in a mix of debt and equity funding. As the name might imply, Fly Now Pay Later is extrapolating the ever-popular Buy Now Pay Later financial method to the travel industry. The new capital will allow the company to push forward with its aggressive US market expansion plans. Since 2015, Fly Now Pay Later has raised a total of $172.1 million in debt and equity funding.
Now you don’t need me to tell you that the travel industry has taken a beating over the past two years. According to aviation analytics firm Cirium, air travel in and out of Fly Now Pay Later’s home market alone dropped by 71% in 2021.
However, founder Jasper Dykes, and previous backers including Revenio Capital and Taurus Wealth Advisors, are willing to gamble on data provided by Statista that domestic travel spend in the United States will hit $968 billion 2024 and Juniper Research’s figures that indicate that Buy Now, Pay Later (BNPL) will account for more than 50% of the market for embedded finance by 2026.
“There’s always a temptation to put the brakes on in times of significant headwinds, but with consumer expectations continuing to shift from traditional lending towards alternative convenient digital experiences, we upheld our investment commitments into developing our technology and threw ourselves into bolstering our partnership network in the states, which is really gaining momentum,” commented Dykes.
Fly Now Pay Later has established partnerships with KAYAK, Malaysia Airlines, airlines payments network Universal Air Travel Plan (UATP) for EU merchants, and ChargeAfter, a global network of BNPL and point-of-sale financing for merchants.
Fly Now Pay Later’s $75 million in financing was provided by Series A investor Atalaya Capital Management.
“Fly Now Pay Later has handled the past 24 months admirably. It’s a strong brand in a high growth mode, that’s well-positioned to capture the buoyant category demand,” commented Atalaya’s James Intermont.