Bangalore-based fintech start-up Simpl has raised $ 40 million as it seeks to expand its online shopping now and payment service offerings into the world’s second-largest marketplace.
Valar Ventures and IA Ventures led the startup’s six-year Series B cycle. LFH Ventures and some existing investors have also participated in the round, said the startup, which has raised $ 83 million to date.
Simpl partners with popular online brands and offers their customers the ability to make purchases without paying for them at that time.
Over the years, in addition, it has also developed a range of offers, including a one-time payment function; Bill Box, which allows customers to automate their recurring expense payments and split an invoice into three parts, to create a “complete solution,” said Nitya Sharma, co-founder and CEO of Simpl, in an interview with TechCrunch.
Some of Simpl’s partners include the Jio Platforms telecommunications network, Zomato food delivery service, 1MG pharmacy, BigBasket grocery store, and MakeMyTrip ticketing platform.
Buy Now, Pay Later services have been around in India for several years, but have only started to gain traction in recent quarters as e-commerce and digital payments increase their reach in the country.
One of the factors that makes these services popular among consumers is the lack of trust that exists between them and the services they engage with, Sharma said, noting the continued popularity of cash as a payment method for e-commerce businesses.
Fun fact: Uber introduced the ability to allow users to pay partner drivers in cash for the first time in its existence months after its launch in India.
With a service like Simpl, customers know they don’t have to pay right away and have the ability to dispute transactions and quickly request a refund, he said. The startup uses its own underwriting technology to determine which clients it can offer its services to, he said. For brands, too, an easier checkout process means conversion increases dramatically, he added.
“We have built a full stack payment platform that gives merchants ultimate control over the user experience and helps them build consumer confidence when paying. Simpl is like a Khata or a Tab for online trading. This intuitive, trust-based user experience will enable a larger e-commerce market and lead to greater adoption of mobile payments in India and the rest of the world, ”he said.
The startup said it has increased its monthly active merchant and active user base tenfold over the past 18 months. More than 7,000 brands now use Simpl, the startup said. She now plans to work on improving the consumer and merchant experience on her platform and also expand into new areas, including bringing Simpl to offline neighborhood stores and creating a program. loyalty, Sharma said.
“The Indian e-commerce market is at an inflection point and we believe Simpl’s solution is a key catalyst in accelerating the adoption of digital payments in e-commerce,” said James Fitzgerald, partner at Valar Ventures, in a press release. “It considerably improves the consumer experience, which is why it quickly becomes a privileged partner of retailers. The team has demonstrated excellent execution and we are excited to join their mission to democratize e-commerce for all merchants, large and small. “
Pay Later fintech players today fund loans worth $ 500 million each year, Bernstein analysts wrote in a recent note to clients. They expect that figure to climb to $ 26 billion by 2025.
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