# ZBT - Zebit, Inc.



## Dona Ferentes (26 October 2020)

Zebit, Inc (new ASX listing, proposed code: ZBT)

_Zebit is an *ecommerce* retailer that serves millions of credit-challenged consumers who value the proposition of buy now, pay over time. By providing these consumers with up to $2,500 of store credit and access to a marketplace of thousands of brand name products, Zebit gives its customers the ability to shop while spreading their payments over time. Zebit is located in San Diego and is backed by Venture Capital firms that include Crosslink Capital, Wildcat Venture Partners, Leapfrog Ventures, Ulu Ventures, and Correlation Ventures._

another OS outfit listing here. Another BNPL hopeful. Raises question marks, IMO


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## sptrawler (26 October 2020)

Dona Ferentes said:


> Zebit, Inc (new ASX listing, proposed code: ZBT)
> 
> _Zebit is an *ecommerce* retailer that serves millions of credit-challenged consumers who value the proposition of buy now, pay over time. By providing these consumers with up to $2,500 of store credit and access to a marketplace of thousands of brand name products, Zebit gives its customers the ability to shop while spreading their payments over time. Zebit is located in San Diego and is backed by Venture Capital firms that include Crosslink Capital, Wildcat Venture Partners, Leapfrog Ventures, Ulu Ventures, and Correlation Ventures._
> 
> another OS outfit listing here. Another BNPL hopeful. Raises question marks, IMO



IMO it will lead to another outcry, that the poor are being exploited, it just lets people spend next pay today. 🙄


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## peter2 (26 October 2020)

*ZBT*: IPO'd at $1.58. 
Sector is too crowded and this seems like a venture capital rip off of naïve investors.


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## Dona Ferentes (27 October 2020)

peter2 said:


> *ZBT*: IPO'd at $1.58.
> Sector is too crowded and this seems like a venture capital rip off of naïve investors.



Not an auspicious entry. I saw no mention of it until it was trading. first day:


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## Dona Ferentes (27 October 2020)

from the SMH:

_However, Zebit founder and chief executive Marc Schneider said he wasn't worried about "short term fluctuations", adding that the company offered investors a different proposition to the host of BNPL players listed on the ASX, including Afterpay and Zip.



			"We're not very focused on valuation right now what we're focused on is a long term commitment to this market and building valuation through execution," Mr Schneider said. "A lot of them (the BNPL companies) are focused on the same kind of market, the same consumer and replicating each other's models," he said.
		
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Zebit is targeting consumers who would normally struggle to get affordable credit, primarily in the US market. While most BNPL providers take a 2 per cent or 3 per cent commission off the total transaction value Zebit's model works differently.



			"We make our money through the full gross margin, with a much larger consumer set where we're not all competing for the same space in somebody else's cart," Mr Schneider said. "We have our own custom BNPL solution so we can capture the full gross margin... our gross margins are 27.5 per cent."
		
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He added that other BNPL providers were also moving towards similar models with Commonwealth Bank-backed Klarna offering a rewards program and Zip and Sezzle offering virtual capped payments to capture their customers transactions offline.



			"Everybody is doing exactly the same thing, but really the key at the end is what is their level of differentiation from a customer standpoint that's going to allow them to have a sticky customer base?," he said. "I don't think any of those guys can talk about the types of customers that we have in terms of having customers in the cadre that have been with us one, two, three, four years and spend on average $1,000 a year and shop four to five times."
		
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Mr Schneider said Zebit had no plans to offer its products in Australia but the ASX was a solid place to raise growth capital.



			"Look somebody is going to roll up the industry eventually because the space is getting super crowded with the same offering that's not differentiated," he said. "But my focus is really on a totally separate customer base that doesn't qualify for those alternatives so I'm not really worried about customer leakage towards those models."
		
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						Buy now, pay later provider Zebit tanks on ASX debut
					

US-based Zebit has failed to impress the market despite its promise of offering investors a different proposition to the likes of Afterpay and Zip.




					www.smh.com.au
				



_
The whole BNPL sector is going to be regulated. This crowd will only accelerate that trend


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## sptrawler (27 October 2020)

Dona Ferentes said:


> The whole BNPL sector is going to be regulated. This crowd will only accelerate that trend



Yes, it wasn't long ago that we had a banking Royal Commission, one of the beefs was unconscionable lending.

How long before the outcry will be, "people can't afford to eat, because they have spent their next four weeks pay"?
"People can't save for a house deposit, because they have so much short term debt, they need help".

Same **** different day. 😂


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## Dona Ferentes (12 April 2021)

ZBT finally clawed its way back to somewhere near the IPO offer, after what would, I assume, be an encouraging !H result late Feb.


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## Dona Ferentes (18 November 2021)

Dona Ferentes said:


> ZBT finally clawed its way back to somewhere near the IPO offer, after what would, I assume, be an encouraging !H result late Feb.



and that was about it. Now below 40c.

A rather unflattering portrait painted today in the media:


> _At the time of its IPO, Zebit had accumulated losses of $US63 million ($88 million), with a bad debt expense that equalled 68 per cent of gross profit in financial 2019._





> _By June 30, accumulated losses had reached $US72.7 million and provisions for bad debts of $7.5 million equalled 52 per cent of gross profit of $14.4 million._






> _Zebit’s September quarter cashflow statement shows an operating loss of $US6.2 million, with cash on hand of just $US10.9 million. On those numbers, Zebit has less than six months cash funding suggesting it will have to tap local investors again, or run on debt provided by lenders in the US that specialise in high-risk loans._





> _The picture of an ASX-listed subprime lender plagued by bad debts borrowing from another high-risk lender to keep itself funded isn’t pretty, and many investors have already run._




(DNH)


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## System (26 April 2022)

On April 22nd, 2022, Zebit, Inc. (ZBT) was removed from the ASX's Official List in accordance with Listing Rule 17.11, after security holders resolved to remove ZBT from the Official List.


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