Katapult Holding Inc. To Go Public Through SPAC
On Friday Katapult Holding Inc. announced it will go public by merging with special purpose acquisition company FinServ Acquisition Corp. (FSRV). The deal values the company at $1 billion. The deal includes a $150 million private investment in public equity (PIPE) from investors led by Tiger Global Management and Neuberger Berman Funds. The transition to Katapult and ticker symbol "KPLT" will happen mid-2021.
Katapult, formerly known as Zibby, is a unique financial technology company in the eCommerce marketplace. It allows retailers to provide a no-credit-required financing option to their customers. Most companies that offer payment options to non-prime consumers have not yet tapped into or mastered the eCommerce space and those that have, require a high credit score, leaving nearly 50% of American consumers unable to purchase what they need online and a missed $42 billion market opportunity for retailers.
"I'm very proud that Katapult has been able to close the gap by leveraging non-FICO data sources to offer payment options both online and in-store to consumers with little or no credit," says Orlando Zayas, CEO of Katapult.
Through Katapult these type of consumers can get approved for up to $3,500. It allows consumers to lease-to-own products such as furniture, electronics, appliances, auto and more. Katapult not only gives consumers the power to obtain new and more expensive items, but also increases retailers' reach into an untouched consumer base.