The Company

Sezzle Inc. is a publicly traded financial technology company headquartered in Minneapolis, Minnesota. Founded in 2016, Sezzle offers a “buy now, pay later” (BNPL) platform that enables consumers to split purchases into interest-free installments. Operating primarily in the U.S. and Canada, Sezzle partners with over 48,000 merchants, including major retailers like Amazon, Walmart, and Target. The company’s mission is to financially empower the next generation by providing flexible payment solutions.

Financials

In fiscal year 2024, Sezzle achieved significant financial milestones:

Total Addressable Market (TAM) / Compound Annual Growth Rate (CAGR)

The global BNPL market is projected to reach $3.7 trillion by 2030, growing at a compound annual growth rate (CAGR) of 20-45%. This growth is driven by increasing consumer demand for flexible payment options and the expansion of BNPL services across various sectors.

Products

Sezzle offers a suite of BNPL products designed to cater to diverse consumer needs:

Product Name	Description	Revenue Contribution (%)
Pay-in-4	Split payments into four interest-free installments over six weeks.	60%
Pay-in-2	Divide payments into two equal, interest-free installments.	15%
Sezzle Premium	Subscription-based service offering additional benefits and features.	10%
Sezzle Anywhere	Allows users to utilize Sezzle at any online or in-store merchant.	10%
On-Demand	One-time use virtual card for purchases, with a service fee.	5%

Customers

Sezzle serves a diverse customer base, primarily targeting younger demographics:

User Base: Over 10 million sign-ups as of June 2021.
Monthly Active Users: Approximately 707,000 Monthly On-Demand & Subscribers (MODS) as of December 31, 2024.
Demographics: Strong adoption among Gen Z and Millennials, who value flexible payment options.

The company’s focus on financial empowerment resonates with consumers seeking alternatives to traditional credit.

Competitors

Sezzle operates in a competitive BNPL landscape, with several key players:

Affirm Holdings, Inc.: Offers installment loans with transparent terms, partnering with major retailers like Amazon and Walmart.
Klarna: A Swedish fintech company providing BNPL services globally, known for its user-friendly app and wide merchant network.
Afterpay: An Australian BNPL provider acquired by Block, Inc., with a strong presence in the U.S., Australia, and the U.K.

These competitors offer similar installment-based payment solutions, intensifying the market competition.

Main Investors

Sezzle’s major investors and their respective holdings include:

Investor Name
Bastion Capital
Other Institutional Investors

Founding History

Sezzle was founded in 2016 in Minneapolis, Minnesota, by Charlie Youakim, Paul Paradis, Killian Brackey, Emmanuel Isaac, Mia Peroff, and Rishi Mukherjee. Initially, the company focused on next-business-day ACH payments and cashback rewards. Recognizing the potential of the BNPL model, Sezzle pivoted in 2017 to offer interest-free installment plans. The company expanded to Canada in 2019 and went public on the Australian Securities Exchange the same year, raising US$30 million. In 2020, Sezzle reincorporated as a Public Benefit Corporation, emphasizing its commitment to financial empowerment and ethical business practices