The former Flexigroup, now rebranded as Humm, the name of its BNPL product, is launching a US line of credit, marketed as a BNPL solution in the highly competitive US market in a joint venture with fellow ASX-listed fintech Douugh.
The proposed JV will result in “Douugh powered by humm” as a “BNPL” solution involving a line of credit up to US$1000, repaid in six payments.
Humm (ASX: HUM) is tipping $2.5 million into Douugh (ASX: DOU) for R&D and marketing, as part of a $12 million raise by Douugh at 22 cents a share.
Douugh shares went into a trading halt at 26.5 cents last Tuesday pending the announcement today. In early trade this morning, Douugh shares have skyrocketed more than 20% to 32 cents in response. Humm shares are up around 7% to $1.35
Douugh listed at 3 cents a share in October through a reverse takeover of telco Ziptel. Last month the company released its first US product, a financial “wellness” app, following 18 months of testing. It plans to make it a subscription-based platform.
The deal with Douugh comes through Humm’s new innovation offshoot, Humm Ventures.
Humm CEO Rebecca James said the proposed joint venture with Douugh is the company’s first steps into the United States.
“At the same time, we are demonstrating how Humm Ventures can create innovative and novel ways to take Humm’s world class technology and capabilities to expand its relevance and distribution,” she said.
Douugh plans to spend around $3 million of its $12 million raise on R&D and more than $7 million on marketing.
The non-binding MOU signed by two parties has no set term and the financial arrangements have yet to be hammered out.
The US market is already heavily saturated with BNPL products, led by ASX-listed market leader Afterpay and US-based, ASX-listed Sezzle, followed by the likes of Zip, which acquired US BNPL company QuadPay.
story by: Simon, editor of Startup Daily.