Zip cofounder Larry Diamond makes his exit to focus on philanthropy

Zip cofounder Larry Diamond has called time on his board roles at the ASX-listed buy-now-pay-later fintech, stepping down as a director and US chairman, effective immediately.

“Now is the right time for me to step back from my day-to-day role at Zip,” he said in a statement to the ASX.

“I’m very proud of what Zip has achieved and have total confidence in the team that will be leading the company to continued great success. I remain a committed shareholder and supporter of Zip and the team.”

Diamond founded the BNPL in 2013 with Peter Gray in 2013, taking the business public two years later at $0.20 cents a share, raising what now seems like a modest $5 million for a market capitalisation of $20 million.

This morning Diamond sold $100 million worth of shares to launch a family office and philanthropic foundation. Zip is worth around $4.45 billion, with its share price rising more than 700% over the last 12 months to sit at $3.41 at Tuesday’s close.

Diamond owned around 4.7% of Zip – just under the substantial shareholder threshold and sold just over half his stake, retaining 25 million shares.

He will remain available to Zip as an adviser on strategic initiatives. Cofounder Peter Gray remains ANZ CEO.

Zip chair Diane Smith-Gander said the respected Diamond’s decision and “express our appreciation of his extraordinary achievement” over the past 11 years.

“We acknowledge that there is a changing of the guard across the tech sector as companies have matured and their founders are now in a position to realise their next stage of contribution to their domestic and international communities, in Larry’s case through his new Family Office and Foundation.”

Zip had a massive turnaround over the last two years following a concerted cost-cutting campaign in early 2023 that saw the fintech sell off Twisto, the European BNPL it acquired in 2021, as well as its South African business, Payflex, alongside a wind down of its Middle Eastern operations. The shrinkage saw it pull out of 11 markets and cut staffing, as well as restructuring debt to reduce it by $192 million in a push to stop cash burn and reach profitability.

The company raised $24.7 million at $0.47 per share in June last year as part of the restructure.

Diamon spent two years as US CEO before stepping down and returning to Australia with his family in the second half of this year.

Zip Group CEO Cynthia Scott praised Diamond as an inspirational leader.

“He has prepared the team well for this natural progression and is stepping down at a time when we have the leadership and broader team executing strongly on a strategy that is delivering for the company and its shareholders,” she said.

“Joe Heck, who joined as our US CEO in July, is doing a terriffic job leading the growth of the US business and driving our significant opportunity in that market.”

Zip transactions in the September quarter hit $2.8 billion, up nearly 23% on 12 months ago.