Sezzle is the next payments company on equity raising watchlists.
The company is believed to be considering an $80 million raising with the help of stockbroker Ord Minnett.
Funds raised would be used to help fuel growth, at a time when the COVID-19 pandemic and associated lockdowns have proved helpful to online retailers and their payments providers.
It comes amid huge investor interest in payments providers, with Afterpay launching a capital raising and founder sell-down this week, as well as Brisbane-based buy now, pay later outfit Fu opening a Series A funding round and ASX aspirant and fellow BNPL player Laybuy launching a pre-IPO offer.
Sezzle shares were up 54 per cent and trading around $7.50 at lunchtime on Thursday.
News of the potential raising comes the same week Sezzle provided a second quarter update to the market where it reported June quarter merchant sales had risen 58 per cent to $US188 million ($267 million), and total merchants were up 27 per cent to 16,112.
Meanwhile, active consumers using Sezzle had jumped 28 per cent from the March quarter to the June quarter to 1.48 million.