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Mumbai-based digital lending startup, ePayLater, has closed its Pre-Series A funding round of undisclosed amount. The fresh funding was led by ICICI Bank, the second largest private bank in India and also saw participation from GMO Global Fintech Fund, the investment fund of the internet conglomerate in Japan along with family offices like Parekh and Patni and foreign investors from the UK.

With this fresh funding, ePayLater is better poised to ramp up its technology architecture as well as strengthen its product. The company had earlier raised USD 2 million during its angel round of funding.

ePayLater provides interest-free credit terms for a 14-day period through its unique ‘Buy Now, Pay Later’ facility. It offers the smoothest possible checkout and payment experience, as users don’t have to pull out their card to complete a transaction. Customers can access ePayLater at merchants where ePayLater is integrated directly and also at merchants (both online and offline) through its award winning UPI product. Access to the credit facility using UPI is available on a select set of merchants at the initial stage and is being ramped up slowly.


To gain access to this popular facility, customers need only download and sign up on the ePayLater application. The platform uses advanced machine learning techniques to do a real-time credit assessment using data such as buying patterns, digital footprints, social media information, and device information. The user is then provided with a credit limit, and can actively use this credit amount to pay for products and services online.

Talking about the development, the co-founders of ePayLater, said, “ePayLater continues to push the boundaries of innovation to bridge the credit divide in the country. Credit at the point of sale is a need of millions of customers across the country and ePayLater is working towards providing convenient digital solutions for the same. We are indeed delighted that this esteemed group of investors has shown faith in our business model and have invested in our platform so that we can scale faster and fulfill our vision with greater agility.”

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ePayLater has tie-ups with prominent merchants/marketplaces that allow customers to use this facility, including industry leaders such as IRCTC, Oxigen, PVR, Croma etc. Continuous innovation has made it possible to increase the reach across large number offline merchants as well which accounts for about 97% of all P2M payments today.

Founded in 2015, ePaylater is a ‘Buy Now, Pay Later’ payment solution through which customers can instantly get access to a credit limit to make faster online/offline purchases. Once signed up, a customer can avail a credit limit upto Rs. 20,000. A 14-day interest-free period is provided from the date of purchase to settle the payment.

Operated and owned by Mumbai-based Arthashastra Fintech Pvt. Ltd, ePayLater had earlier raised $2 million (Rs 13.3 crore) in a seed round of funding from HNIs, in June 2016. The investors were said to be amongst the leaders in the global financial industry.

In 2017, the startup has partnered with IRCTC to offer a quick and completely frictionless payment experience for ticket bookings on IRCTC.

ePayLater has over 1000 merchants on-board including IRCTC, PVR, Croma, Box8, Travelyaari, Ticketnew, to name a few. One can also use it to transact with merchants that accept UPI. Currently, ePayLater UPI can be used on Amazon, Flipkart, Jabong, Myntra and Uber among others.

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