White label Buy Now, Pay Later company Divido has called in the administrators and updated its website with a brief statement. Specifically, Divido Financial Services Limited entered administration on 5 July 2024, marking the end of its operations.

The company offered a whitelabel retail finance platform designed to expedite the implementation of Buy Now, Pay Later services for lenders, retailers, and partners. Financial indicators had signalled challenges for Divido, with continuous losses reported from GBP 343,673 in 2018 to GBP 7.26 million by 2022. Its H-Score, a measure of financial health, consistently hovered at a low level, registering 11 out of 100 in its latest filing, well below the industry average of 60 according to Company Watch.

Notably, Divido's financial structure showed unusual characteristics, with revaluation reserves significantly exceeding total assets by 360%, a rare occurrence among UK companies. Despite securing USD 45 million in funding, including a USD 30 million Series B round led by HSBC and ING in 2021, Divido faced several financial challenges. The company, founded in 2014, facilitated instalment payments at point of sale, serving as an intermediary between merchants and consumers.

Following the appointment of administrators, Divido ceased operations, as reflected by the replacement of its website with a brief notification of the administration process. Previous Developments from Divido In July 2023, Divido, announced the upgrade of its UK direct-to-merchant platform to give merchants easy access to retail finance across Europe. With ‘Divido Connect’ merchants could uniquely offer retail finance from a network of lenders across the UK and Europe.

Previously available in the UK, the service went live in France, Belgium, Spain, Portugal, Italy, and Romania. Divido Connect made it straightforward for merchants to offer their customers’ checkout finance for single payments and for European merchants to enter the UK. .