Bucking the travel industry downturn trend, London’s BNPL fintech Fly Now Pay Later has landed an additional £10 million in an equity investment co-led by Revenio Capital and Taurus Wealth Advisors. This fuel adds to the £35 million of equity and debt Series A financing raised last year and is expected to be used to propel UK, US, and German expansion goals.
Founded in 2015 by Jasper Dykes, Fly Now Pay Later does what it says on the tin, offers consumers a way to spread the cost of a trip over up to 12 monthly installments.
Leisure travel has been less impacted in the United States than in Europe, and according to Dykes, “interstate flights have been operating at around 75 percent of pre-pandemic levels.” With a $100+ billion annual online commercial aviation spend, the US market is a prime target for Fly Now Pay Later.
An FCA-regulated company within their home market, Fly Now Pay Later has already been beta testing its payments technology within the US for the past six months.
With the travel industry experiencing the worst downturn in recorded history, travel brands have been seeking out solutions that will meet consumers’ newfound expectations, namely that in the e-commerce and digital payments sector.
“After more than a year of being in our homes, people are itching to dust off their suitcases globally,” comments Dykes. “The recovery of travel is likely to be gradual, but when it happens, we hope that by giving people the freedom to book a trip and pay at a pace that works for them, will help spur reservations.”
It would appear that history is repeating itself here, as just a few weeks back we reported Butter’s £15.8 million raise. Butter, now a full-service BNPL, saw its genesis as a travel BNPL. Maybe the timing wasn’t, or was, right, so it should be interesting to see if Fly Now Pay Later can capitalise on dramatically different market conditions.