B2B BNPL BizPay, which hoped to list at a $400 million valuation, has been placed in voluntary administration

Invoice payment buy now pay later (BNPL) fintech BizPay was placed in voluntary administration last week

Jonathon Keenan and Peter Krejci from BRI Ferrier were handed the books as administrators on November 23.

The company’s website says no new loans are being issued while a restructure is being explored.

Ironically for a fintech offering a BNPL service in the B2B market, its own cashflow shortfall has seen it enter administration after attempts to raise additional capital failed.

BizPay’s spectacular rise and fall is perhaps emblematic of the broader BNPL sector. At the time AfterPay was being acquired by Square for a staggering $39 billion in 2021, the company was seeking investors for a pre-IPO raise amid talk of a $400 million listing on the ASX

It’s believed to have raised at a $151 million valuation in early 2021 and counts Macquarie Bank, SG Hiscock, hedge fund Bennelong Asset Management and VC R2 Ventures among its backers, having raised more than $33 million since it was founded in 2019.

But amid a broader downturn in the BNPL market in 2022, BizPay’s worth had fallen to $3.44 million pre-money valuation last November as it looked to raise up to $8 million, having maintained the dream of a public listing arlier in the year.

In May 2022, the company shed around a third of its staff, with cofounder and CEO David Price parting ways with the business by mid-year.

Administrator Jonathon Keenan said they have begun a sale of business process for BizPay, with expressions of interest sought by December 4.

“A fair amount of interest in acquiring BizPay has already been expressed,” he said

“So we are hopeful of being able to sell or restructure the business. There is strong demand for their offering and BizPay products.

Keenan said the company had been working on an internal restructure, but ran out of cash after failing to find additional investment.

“They had been on a turnaround journey and as part of that unsuccessfully sought further capital this year, creating a cashflow challenge,” he said.

A first meeting of creditors will be held at BRI Ferrier’s Sydney office on December 5.