Point of sale finance company Divido has raised £2.5m from Mangrove Capital Partners and London venture capital firm DN Capital.

Divido enables customers to spread the cost of any purchase over a period of time while the retailer gets paid in full right away. It charges an initial set up fee, plus a monthly fee and the cost of the finance provided.

Launched in September 2015, the firm claims to work with over 100 retailers, brands and manufacturers. The company can currently facilitate £500m in finance per year and up to £25,000 for each individual transaction.

It was co-founded by Christer Holloman, who previously launched $1bn start-up Glassdoor.com; Anders Hallsten, who previously built e-commerce solutions for brands like Range Rover; and Fredrik Borgquist, previously IT director at RBS.

“Christer and his team have built a very resilient and highly scalable payment solution and the company’s rapid growth is testament to the value it provides to retailers,” said Michael Jackson, partner at Mangrove Capital Partners.

“We’ve passed numerous FinTech opportunities up until now and we’re confident we’ve backed the right horse,” he added.

Divido was recently awarded a £200k grant from the government’s innovation agency, Innovate UK, for its introduction of transparency and competition in the traditional point of sale consumer finance market.