The UK government has secured what it describes as a “seat at the table” in the fast-moving global race to commercialise driverless cars, after the British Business Bank backed a landmark $1.5 billion fundraising round for British autonomous driving firm Wayve.
The investment round, completed last week, valued the Cambridge-founded artificial intelligence company at $8.6 billion, the highest valuation yet achieved by a UK AI start-up. The round was led by SoftBank and supported by global heavyweights including Microsoft, NVIDIA, Uber, as well as major automotive groups Nissan, Stellantis and Mercedes-Benz.
The British Business Bank invested £25 million in the round, one of its largest direct equity commitments to date, signalling growing government ambition to anchor high-growth technology firms in the UK rather than see them migrate or list abroad.
Leandros Kalisperas, chief investment officer at the state-backed lender, said the participation was about more than financial return.
“It will ultimately be for the company itself to determine its exit strategy,” he said. “But being invested gives us a seat at the table.”
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Founded in 2017 by Cambridge PhD researchers Alex Kendall and Amar Shah, Wayve has become one of Europe’s most prominent players in autonomous driving. Unlike some rivals that rely heavily on high-definition mapping and complex sensor stacks, Wayve has focused on end-to-end AI models capable of learning to drive using large volumes of real-world data, an approach the company believes will allow faster scaling across cities and geographies.
Kalisperas recently experienced the technology first-hand during a demonstration drive in London alongside Kendall. He described the underlying AI architecture as “a fantastic technology that we want to support,” adding that its potential applications could materially shape urban mobility in the UK and internationally.
The investment comes at a pivotal moment for the company. Wayve is transitioning from what Kalisperas described as “technology risk to scale-up risk”, moving beyond proving its system works, to commercial deployment and global expansion.
Wayve plans to begin commercial robotaxi trials in 2026, working alongside Uber, and is targeting broader international rollout thereafter. The company has also indicated ambitions to license its autonomous driving software directly to carmakers, embedding its technology in consumer vehicles rather than operating fleets itself.
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The British Business Bank’s involvement reflects a broader shift in government industrial strategy. Since Labour’s spending review last year, ministers have pledged to expand the scale and pace of the bank’s direct investments, committing £6.6 billion of additional capital and increasing its total capacity to more than £25 billion.
The objective is clear: prevent promising UK technology firms from being forced to seek capital abroad or sell prematurely to overseas buyers. The UK has historically struggled to retain ownership of its fastest-growing technology companies, with many listing in the US or being acquired by global competitors.
By investing directly into late-stage scale-ups such as Wayve, the government hopes to encourage greater participation from domestic institutional investors, including pension funds.
Kalisperas said part of the strategy was to “make the ecosystem bigger, and therefore the British involvement in British companies to be bigger,” helping to crowd in additional private capital.
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That approach has not gone unchallenged. Last month, Cressida Hogg, president of the Confederation of British Industry, questioned whether state equity stakes genuinely attract private capital or risk distorting markets.
Kalisperas rejected that characterisation, arguing that Wayve’s commercial fundamentals alone justified the investment.
“We would have made this in any and all scenarios in all likelihood because we’re compelled by the narrative and the commercial returns to the taxpayer,” he said.
The scale of the funding round underscores the growing strategic importance of autonomous mobility technology. Global carmakers and technology firms are racing to secure leadership in software-defined vehicles, with AI increasingly seen as the decisive competitive differentiator.
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For the UK, Wayve represents one of the few domestically founded companies operating at the very frontier of AI-driven transportation. With backing from some of the world’s largest investors and industrial partners, its progress will now serve as a test case for whether Britain can nurture and retain globally competitive technology champions.
Jamie Young
Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.
I have more than 35 years of experience in the investment field, having worked as a sell & buy side analyst and portfolio manager for debt and equity funds. I am currently managing a high-yield Latam bond fund.My goal, as a Seeking Alpha contributor, is to provide a fundamental view and analysis of companies and funds in a streamlined version of institutional research. The operating and financial forecast, whether my own or based on consensus, drives the valuation and ultimate rating. I like numbers (financial statements) and use words to explain their meaning and potential consequences.For the most part, my selection choices reflect what I believe can offer long-term potential, and I frequently take positions in many ideas for my personal account.
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Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
SYDNEY — Zip Co Ltd shares climbed 7.73 percent to close at A$2.51 on Monday, extending gains for the Australian buy-now-pay-later provider after last week’s strong third-quarter results and an upgraded full-year profit forecast that highlighted accelerating growth in its key U.S. market.
Zip Co Shares Jump 7.73% to $2.51 as Buy Now Pay Later Giant Upgrades FY26 Guidance on Record Profit
The stock added 18 cents in trading on the Australian Securities Exchange, reflecting continued investor enthusiasm following Zip’s April 17 announcement of record cash earnings before tax, depreciation and amortisation. Volume remained elevated as traders digested the company’s improving profitability and strategic momentum amid a recovering fintech sector.
Zip reported a record cash EBTDA of A$65.1 million for the three months ended March 31, 2026, a 41.5 percent increase from the prior corresponding period. Operating margin expanded sharply to 19.4 percent from 16.5 percent a year earlier, demonstrating strong unit economics and operating leverage as the company scales.
Total transaction volume reached A$4.0 billion, up 22.4 percent year on year, while total income rose 20.2 percent to A$335.2 million. Transactions increased 20.3 percent to 27.4 million, and the group ended the quarter with 6.5 million active customers, up 3.5 percent.
The standout performer was the U.S. business, where transaction volume surged 43.1 percent in U.S. dollar terms to US$2.12 billion. Active customers grew 9 percent, adding 375,000 accounts, while merchants on the platform rose 17.9 percent. Zip expanded its Pay-in-Z offering with the launch of Pay-in-2, giving customers greater flexibility for everyday purchases.
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In Australia and New Zealand, the business delivered steady profitable growth. Revenue and Australian receivables increased 5 percent and 8.7 percent respectively. Zip also announced the upcoming launch of ZMobile in April 2026, a new capital-light mobile offering in partnership with TPG Telecom that is expected to diversify revenue streams.
Net bad debts stood at 1.9 percent of total transaction volume, in line with management targets. In the U.S., credit losses remained steady at 1.86 percent of TTV, with expectations for further improvement below 1.75 percent in the fourth quarter.
On the back of the robust third-quarter performance, Zip upgraded its full-year 2026 group cash EBTDA guidance to no less than A$260 million, up from previous expectations that second-half performance would be broadly in line with the first half’s A$124.3 million. On a constant currency basis, the figure equates to at least A$271 million.
The company reaffirmed its other key FY26 targets, including U.S. TTV growth greater than 40 percent in U.S. dollars, group revenue margin around 8 percent, cash net transaction margin between 3.8 percent and 4.2 percent, operating margin above 18 percent, and cash EBTDA as a percentage of TTV above 1.4 percent.
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Group CEO and Managing Director Cynthia Scott highlighted the resilience of Zip’s business model. “Zip’s resilient business model continues to drive increased profitability at scale, delivering record cash earnings of $65.1m, up 41.5% year on year,” Scott said in the results update. “Operating margin expanded 292 bps to 19.4%, reflecting strong unit economics and significant operating leverage. Momentum continued across both markets, underpinned by deepened customer engagement and disciplined execution.”
Scott noted particular strength in the U.S., where the company is balancing rapid growth with credit discipline. She also pointed to innovation in the ANZ market, including the ZMobile launch, as a way to broaden the customer proposition.
The upgrade and solid metrics triggered a sharp rally on April 17, with shares surging as much as 24 percent intraday before closing up around 13-14 percent on exceptionally high volume exceeding 26 million shares. Monday’s further 7.73 percent gain brought the two-day advance to roughly 22 percent, pushing the stock well above recent lows and reflecting renewed confidence in Zip’s turnaround story.
Analysts and market observers viewed the results as evidence that Zip is successfully executing its strategy of profitable scaling, particularly in the competitive U.S. buy-now-pay-later space dominated by players like Affirm and Afterpay’s parent Block. The improvement in operating margins and steady credit performance helped alleviate earlier concerns about profitability and asset quality that had weighed on the stock in prior periods.
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Zip has faced volatility in recent years, including a significant share price drop earlier in 2026 after a first-half earnings miss. However, the company has since demonstrated consistent progress through cost discipline, product innovation and focused growth in higher-margin segments.
The U.S. market now accounts for the majority of Zip’s transaction volume, and management continues to see substantial runway for expansion. Recent merchant additions and enhancements to the Pay-in-Z product are designed to capture more everyday spending rather than large-ticket purchases alone.
In Australia, despite a more mature market, Zip is returning to growth in receivables and exploring adjacent opportunities such as ZMobile to drive engagement and new revenue without heavy capital outlay.
Investors have also noted Zip’s ongoing capital management efforts, including an on-market share buyback program that has repurchased millions of shares in recent months, signaling management’s view that the stock remains undervalued.
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Broader market sentiment toward fintech and growth stocks has improved modestly in April amid easing geopolitical tensions and hopes for stable interest rates, providing a tailwind for Zip’s recovery. However, the company’s own operational delivery appears to be the primary driver of the recent outperformance.
Looking ahead, all eyes will be on Zip’s full-year results scheduled for August 20, 2026. The upgraded guidance sets a high bar, but analysts suggest the company is well-positioned to meet or exceed it if U.S. momentum persists and credit metrics remain controlled.
Challenges remain, including competition, regulatory scrutiny in the BNPL sector and potential economic slowdowns that could pressure consumer spending. Zip’s ability to maintain low bad debts while growing aggressively in the U.S. will be a key test.
For now, the market is rewarding the progress. At A$2.51, Zip’s market capitalisation sits around A$3.1-3.2 billion, still well below peaks seen in the post-pandemic BNPL boom but reflecting renewed optimism.
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Shareholders and potential investors will monitor upcoming trading updates and any further product launches closely. The ZMobile rollout in Australia could provide an early indicator of success in diversifying beyond core lending products.
Zip Co has transformed from a high-growth, loss-making disruptor into a more mature player focused on sustainable profitability. Monday’s trading and last week’s results suggest investors are increasingly buying into that narrative.
As the buy-now-pay-later sector matures globally, Zip’s emphasis on unit economics, geographic diversification and innovation positions it to compete effectively. Whether the current rally sustains will depend on delivery against the upgraded targets in the critical fourth quarter.
For Australian investors, Zip remains one of the more prominent pure-play fintech stories on the ASX. Its recovery path offers a case study in how disciplined execution and market adaptation can rebuild shareholder value after periods of turbulence.
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With the stock up significantly in recent sessions, some traders may take profits, but underlying fundamentals appear supportive for those with a longer-term horizon. The coming months will reveal if Zip can convert quarterly momentum into consistent full-year outperformance.
A tsunami warning has been issued for certain areas in northern Japan following a magnitude 7.5 earthquake.
The government has warned that tsunami waves three metres high may hit the country.
Tsunami Warning Issued After 7.5 Earthquake
According to a report by CNN, the earthquake struck off the northeastern coast of Japan. The Japan Meteorological Agency (JMA) has since issued a tsunami warning for the Iwate prefecture, as well as parts of Hokkaido and Aomori.
The report notes that a CNN producer in Tokyo noted that the earthquake lasted around seven minutes.
The Japanese government, led by Prime Minister Sanae Takaichi, is now calling for those in the affected areas to evacuate immediately.
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“At this time, we are still confirming the extent of human and material damage, but we will receive detailed reports shortly and proceed with disaster response efforts,” Takaichi told reporters.
Tsunami Waves Already Recorded in Different Locations
According to the live coverage of ABC News, tsunami waves have begun to hit different locations in Japan.
A wave 80 centimetres high has been recorded in Kuji Port, while a wave measuring 40 centimetres was detected at Miyako Port.
Abnormalities have not been reported in the nuclear plants in the area, which are located in Aomori and Miyagi.
Liquidators of collapsed medicinal cannabis company Melodiol Global Health want to question banned director Adam Blumenthal, but lawyers are struggling to serve him while he is overseas.
The precision manufacturer told the stock market on Monday its order book had expanded
Renishaw New Mills headquarters (Image: Renishaw )
Gloucestershire engineering firm Renishaw has raised its revenue and profit guidance for the full year after a “substantial” expansion of orders. The FTSE-250 company told investors on Monday (April 20) it had seen “particularly strong demand” from customers in the semiconductor and electronics manufacturing equipment, and aerospace and defence sectors.
This has led to the business increasing revenue expectations from £775m to £805m and adjusted profit before tax from £145m to £165m.
“We are actively managing the challenges and increasing costs imposed by ongoing economic and geopolitical uncertainties and supply chain pressures,” Renishaw said in a statement.
The listed group, which was established by the late Sir David McMurtry and John Deer in 1973, said it would provide an update on its revenue performance for the 12 months to the end of March on May 6.
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Last month, Renishaw announced it had refreshed its board with three appointments, including a renowned British academic as its new chair.
The news came just months after the precision manufacturer confirmed it had made ownership changes to the business as part of a succession plan.
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