Retail finance provider Zip Co is moving into the small business lending market, with the acquisition of the Australian and New Zealand businesses of global SME lender Spotcap.Zip will pay A$8.8 million for Spotcap ANZ, through an issue of new shares.Spotcap ANZ has loaned more than $130 million since 2015, with a loss rate of less than 3 per cent a year. It currently has $23 million of Australian SME receivables.Zip says Spotcap has a proven underwriting capability that will allow it to fast track its recently announced business finance product.Last month, Zip announced that it would launch a small business product, ZipBiz, which would provide an instalment payment facility for businesses purchases worth up to $25,000.Spotcap's Australian and New Zealand management team, including managing director Simon Keast, will join the Zip team.Zip reported a strong 2018/19 result, with an 80 per cent increase in customer numbers over the year to June and a 108 per cent increase in revenue. Zip's income increased from $39.3 million in 2017/18 to $82.9 million in the year to June. Customer numbers grew to 1.3 million and it processed 4.8 million transactions worth A$1.1 billionThe company has targeted an increase to 2.5 million customers during the current financial year.At June 30, the company's receivables were worth $682.6 million - an increase of 116 per cent.Net bad debt write-offs fell from 2.6 per cent to 1.6 per cent of receivables.The number of retail partners grew from 10,600 to 16,200.The company is still in its development phase and reported a loss of $11.1 million, compared with a loss of $22.5 million in 2017/18.The Spotcap acquisition is not its only recent deal. It entered into an agreement to acquire a New Zealand buy now pay later company PartPay, which also has operations in the United Kingdom. The PartPay deal also gives it a 15 per cent stake in US company Quadpay.