Fintech Douugh prepares to launch BNPL in US

Bank challenger Douugh has inked a strategic partnership with an ASX-listed buy now, pay later operator to launch a BNPL product in the United States.

Douugh kicked off a $10 million capital raising on Friday on the back of the strategic agreement, and had Canaccord Genuity at hand to help in its hunt for fresh equity.

Terms sent to fund managers said the strategic partner had committed to tip $2.5 million into the placement as part of the agreement. The partner was not named.

Of the remaining $6 million, funds were told $4.5 million had been cornerstoned and the remaining $3 million was up for grabs.

The new shares were being offered to potential investors at 22¢ each, which represented a 15.1 per cent discount to Douugh's last close and a 22.2 per cent discount to its five-day VWAP.

Under the agreement, Douugh would launch a BNPL feature on its mobile app, which would offer a $1000 line of credit to eligible customers that could be spent anywhere and paid back in six weekly instalments.

Funds were told the listed strategic partner would provide the balance sheet funding and take on credit losses to service the line of credit.

Money raised from the placement would go towards accelerating marketing and customer acquisition activites, research and development and for general working capital.

News of the deal comes only a few months since Douugh hit the ASX boards in August.

The Sydney-founded business mainly operates in the United States and it's headquartered out of San Francisco.

IS BUNDLL ABOUT TO BE LAUNCHED INTO THE U.S.A VIA THE DOUUGH APP???