Divido, a UK-based fintech company backed by HSBC, has entered administration following a series of funding challenges. The company, renowned for its retail finance platform that connected merchants, lenders, and customers, faced difficulties in securing the necessary investment to continue its operations amid increasingly challenging market conditions.
Founded in 2014, Divido quickly gained traction by offering a white-label platform that allowed retailers to provide instant credit to customers at the point of sale. The company’s innovative approach attracted significant backing, including a substantial investment from HSBC. However, despite its initial success, Divido struggled to maintain its growth trajectory in the face of heightened competition and a tightening funding environment for fintech firms.
Administrators from the firm Alvarez & Marsal have been appointed to oversee the administration process. Their primary objective is to find a buyer for Divido’s technology and to secure the future of its employees. According to sources close to the matter, several potential buyers have already expressed interest in acquiring the company’s assets.
In a statement, Divido’s CEO expressed regret over the administration but remained hopeful about the company’s future. “Despite our best efforts to secure additional funding, the current market conditions have made it incredibly challenging. We believe that under new ownership, Divido’s technology and team can continue to thrive and make a significant impact in the retail finance sector.”
The administration of Divido highlights the broader challenges faced by fintech companies in securing investment during uncertain economic times. As the fintech sector continues to evolve, the fate of Divido will be closely watched by industry observers and investors alike.