Divido, a consumer finance platform in the UK, has raised $15m in Series A funding round led by Dawn Capital and DN Capital.
The funding round was also joined by Mastercard and American Express Ventures.
Divido enables the customers to procure instant credit for online and offline purchases and then pay off the amount over a fixed period of time.
It is currently available through more than 1,000 partners which provide B2C and B2B finance to their customers.
The instant credit services is said to generate more sales for the retailers. Additionally, it also leads to more lending from banks and payment processing for the intermediaries.
Divido CEO Christer Holloman said: “Proactive retailers know they have to try new initiatives to grow sales. Offering customers the option to pay later doesn’t just increase footfall and eyeballs, but it also raises average order values and conversion rates.
“And what’s good for the retailers is also good for the lenders who are providing this credit, and the intermediaries that facilitate the transactions.”
Mastercard senior vice-president for global acceptance Zahir Khoja said: “By providing people with financing choices to suit their lifestyle, along with a simple experience when it comes to paying, people can enjoy shopping more easily.
“Staying ahead, and continuously being able to bring consumers digital financing options will require collaboration and co-creation with newer entrants like Divido.”
Currently, Divido platform is available in the US and several European countries including the UK, Germany, France, Spain and he Nordics.
It plans to expand its services to ten additional nations by the end of next year.