The FlexiGroup Limited (ASX: FXL) share price is going utterly bonkers today, it’s up 27%.
FlexiGroup offers a range of finaning options for consumers and businesses through a network of retail and business partners. It has buy now, pay later options, credit cards and consumer & business leasing. It’s been operating in Australia for more than three decades and serves 1.2 million customers.
Why FlexiGroup Is Going Crazy
FlexiGroup has announced that a number of new high profile retailer partners have joined the humm platform including Myer Holdings Ltd (ASX: MYR), IKEA, the NZ subsidiary of JB Hi-Fi Limited (ASX: JBH), Solomon’s carpets, Strandbags, National Hearing, National Dental Plan and City Fertility.
FlexiGroup also said that it has consolidated two of its legacy platforms, Certegy Ezipay and OxiPay, into one offering that allows customers to spend between $1 to $30,000 interest free.
Humm now accounts for 17% of the buy now, pay later market in Australia and 40% of receivables with over 1 million customers and 13,000 seller locations and e-commerce platforms. In New Zealand it has 160,000 customers who can shop at 1,700 seller locations.
The idea behind humm is that customers can pay for lower-costing things up to $2,000 over 2.5 or 5 months and the more expensive things worth over $2,000 to be repaid between 6 to 60 months from the same app.
FlexiGroup CEO Rebecca James said: “The addition of these leading brands across our target verticals reinforces the strength of humm’s offering – bringing new growth opportunities to retailers and delivering a unique and compelling user experience direct to consumers.”
Is FlexiGroup A Buy?
Know the excitement surrounding operators like Afterpay Touch Group Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), there is a fair chance the market will send the FlexiGroup share price higher over the coming weeks.
But I’m not sure if it’s at a good valuation or not – I would like to see some revenue/profit numbers coming through with the expanded FleixGroup offering. I think the rapid growth shares in the FREE REPORT below could be better investment choices.
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