Credit provider

ICICI and Japanese fund GMO support digital credit provider ePayLater


Family offices such as Parekh and Patni also participated

The startup seeks to accelerate its technology and strengthen its product

Currently, ePayLater has over 3,000 merchants on board

Digital credit solutions provider ePayLater raised an undisclosed amount in a pre-Series A funding round led by ICICI Bank. It also saw the participation of GMO Global Fintech Fund, the investment fund of Internet conglomerate GMO Venture Partners in Japan, as well as family offices such as Parekh and Patni and foreign investors from the United Kingdom.

With this injection of capital, ePayLater seeks to accelerate its technological architecture as well as to strengthen its product. The company previously raised $ 2 million (INR 14.09 Cr) in its angel funding round.

Founded in 2015 by Aurko Bhattacharya, Prasannaa Muralidharan, Uday Somayajula, Shanmuhanathan Thiagaraja and Akshat Saxena, ePaylater is a ‘Buy Now, Pay Later’ payment solution where customers can instantly access credit for online purchases / offline faster.

Once enrolled, a customer can receive a credit of up to INR 20,000 ($ 284). There is a 14 day interest-free period from the date of purchase to settle payment.

Currently ePayLater has over 3000 merchants on board including IRCTC, PVR, Croma, Box8, Travelyaari, Ticketnew. It can also be used to transact with merchants that accept UPI. Currently, ePayLater UPI can be used on Amazon, Flipkart, Jabong, Myntra, and Uber, among others.

The platform claims to use advanced machine learning techniques to perform real-time credit assessment using data such as purchasing habits, digital fingerprints, social media insights, and information about electronics. The user then has a credit limit and can actively use that amount to pay for products and services online.

According to the co-founders of ePayLater, point-of-sale credit is a need for millions of customers across the country. “With this investment, we are looking to scale faster and achieve our vision with greater agility. “

Buy now, pay later as an option has been very popular with the price sensitive Indian public. Another notable option is LazyPay offered by PayU. Here, users can benefit from a small ticket credit of up to INR 30,000 ($ 425.75) for 15 days. As shared by the company in a recent email interaction with Inc42, LazyPay has a network of over 100 merchants and its app crossed 1 million downloads in 2018.

Currently, LazyPay claims to facilitate over a million transactions per month with customers like Swiggy, Samsung, Croma Oyo, ixigo, Airtel, Bookmyshow, among others. In August 2018, LazyPay also started offering personal loans at the merchant checkout. The platform now receives around 8,000 to 9,000 personal loan requests per day and has already disbursed around 6,000 loans to its consumers.

According to research firm Statista, in August 2018, 805.52 million ATM transactions and 357.17 million point-of-sale transactions were made through debit cards in India. In addition, according to the Reserve Bank of India (RBI), in June 2018 the number of debit cards increased to 944.3 million with 19.2 million new cardholders. In addition, a total of 39.37 million credit cards were in use, with the addition of 0.76 million cards.

Although the statistics paint a picture of growth, reports suggest that less than half of debit / credit cardholders were active as of July 2018.

This opens up enough opportunities for Indian fintech players offering buy-it-now and payment-to-consumer solutions. Other notable players in this segment are Bill Me Later (acquired by Pay Pal), Simpl, Slice Pay. In addition, e-commerce companies such as BigBasket and Flipkart, which have tested the waters in this segment.


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