Plenti (ASX:PLT) share price slips on renewable energy BNPL launch

The Plenti Group Ltd (ASX: PLT) share price is slipping today after it announced the launch of its own interest-free, buy now pay later finance for renewable energy technology. 

At the time of writing, the Plenti share price is down 2.38%, trading at $1.02.

What’s driving the Plenti share price today? 

Plenti is pleased to bring its BNPL product public after a successful 3-month pilot with selected renewable technology partners. The new zero-interest payment plan will allow Australian homeowners to spread the cost of renewable energy technology purchases such as solar panels and batteries, over up to 72 interest-free monthly payments. 

The company believes this BNPL product may materially increase the size of its existing renewable energy finance market opportunity due to the simplicity and appeal to BNPL finance. It views this offering as an opportunity to create a ‘one-stop shop’ for vendors to offer both an interest-bearing and interest-free BNPL finance from a single point-of-sale portal.

Plenti CEO Daniel Foggo welcomed the progress, saying:

The performance of the pilot has far exceeded our expectations and gives us confidence in future demand from our total network of referral partners. Our expansion into BNPL finance marks an exciting development in our plans to be the Australian consumers’ funder of choice for the purchase of renewable energy technology.

By offering a simple zero interest payment plan, differentiated by customer-focused technology and term flexibility, we believe we can help more households enjoy the benefits of affordable renewable energy while helping Australia achieve its emissions reduction goals.

Plenti snapshot 

Plenti is a consumer lending and investment business focused on three core verticals of the Australian credit industry: automotive lending, renewable energy lending, and personal lending. 

The company listed on the ASX on 23 September 2020 at an initial public offering (IPO) price of $1.66 per share. Its shares have never surpassed its offer price and have drifted lower in recent weeks to the $1.00 level.

Despite its share price weakness, the company’s performance has exceeded prospectus forecasts. In its 1H FY21 results announced on 18 November 2020, the company highlighted a 33% increase in loan originations to $167.0 million, 6% above prospectus forecasts. Similarly, revenue had increased 41% to $26.0 million, 2% higher than its prospectus. 

Automotive lending is the company’s largest revenue vertical. In 1H FY21, it was responsible for $81.1 million or roughly half the company’s loan originals. 

After the Plenti share price slip today, the company now has a market capitalisation of $177 million.