Openpay, an Australian company that ran BNPLs, has gone into receivership and let go of 80 workers. This happened just days after the company announced record quarterly results.
Last week, the ASX stopped trading Openpay shares before receivers were named. Now, receivers are in charge of the company’s assets, operations, and trading.
The platform is no longer accepting new users. But those who are already on it still have to pay off their balances.
Openpay reported a record quarterly revenue of A$10.1 million, with increased transaction value, active plans, and active consumers week earlier. Now, Openpay has shut down.
The Australian Financial Review says that 80 of the company’s 140 employees have already been laid off. The rest are still working to collect payments and run the Openpay B2B unit.
The receivers are now trying to sell assets, such as the technology platform Openpay. The AFR says that other fintech companies have already said they are interested in the assets.
Receivers were called in after Openpay failed to get “funding amounts sought under a utilisation notice served under the company’s working capital facility with AH Meydan Pty Ltd.”
Over the past year, players in BNPL have felt the effects of rising interest rates and a wider economic downturn. Openpay had spent a lot of money trying to break into the US and UK markets. But it was forced to leave both of them last year.
