Fly Now Pay Later rakes in £35m for payments app

British fintech startup Fly Now Pay Later has raised £35m in Series A equity and debt funding to support the launch of its payments app.

The funding round was led by an asset management firm Revenio Capital as well as Shawbrook Bank and BCI Finance.

Fly Now Pay Later says it will use the funds to improve its product offering and help European expansion.

Founded by Jasper Dykes in 2015, the alternative travel payment provider intends to use the money to support its product offering in the UK.

The London-based startup will also use the funds to foray into the German market in the second quarter of this year, followed by France in 2021.

Fly Now Pay Later, which employs 70 staff in the UK, allow clients to pay for their trips in flexible monthly instalments over up to 12 months.

Funding is offered at upwards of 0% APR through travel brands such as lastminute.com and TravelUp.

Dykes said: “Few industries have been affected as significantly as tourism in the wake of Covid-19. This investment is a welcome boost to the sector and provides us with adequate cash flow to help steer us through these challenging times.

“It’s predicted that once lockdown restrictions begin to ease, airlines will need to recoup costs – leading to unavoidable price rises in the future.

“Fly Now Pay Later offers travellers a flexible and affordable way to pay for travel. By removing financial boundaries, we hope to open the post-Covid 19 world for travellers and reconnect people with their friends and families around the globe.”

Using the app, users can book flights, hotels, car hire and insurance and offers payment options to support businesses.

Revenio Capital director Kitarack Chapman said: “Fly Now Pay Later’s innovative and data-driven financial solutions are fundamentally re-aligning the interests of travellers and merchants for the better.

“We are excited to support the company and its experienced management team as they continue delivering their customer-oriented mission to make life easier for travellers in the UK, Europe, and further.”