Delhi-based fintech startup Paytail, which provides buy now pay later (BNPL) services, today announced it has raised $1.5 million in a seed funding round led by Cholamandalam Finance, a Chennai-based investment and finance company. The round also saw participation from marquee angel investors.
Delhi-based Maple Capital Advisors has acted as an investment banker for this transaction, while Stratage law was the legal advisors to the startup, the statement said.
Paytail plans to utilize the raised funding to enhance the product and build a strong team to transform the experience of offline buyers and sellers. The startup is aiming to achieve a 10x-15x growth rate in the monthly transactions in the next 12 months, the statement adds.
Founded in 2021 by Vikas Garg and Amit Chaturvedi, Paytail aims to revolutionize offline commerce by enabling instant paperless EMI’s to customers as well as transforming the selling experience of the merchants through scalable technology solutions.
In simple words, It works with top NBFCs and provides technology for instant loan processing to consumers who are short of funds and looking to buy products and services across offline merchants.
Since its inception, the startup has developed a network of 10+ corporates, 25,000 merchants, and more than 100,000 customers within a short span of six months. “Paytail is committed to building a network of other large financial institutions to cater to the pre-approved loan offers for consumers,” the startup said in a release.
“We are trying to address the real pain points in a segment that contributes 95 percent of India’s retail, away from the internet-only offerings of the present BNPL players,” Vikas Garg, co-founder of Paytail, said. “We have the vision to create the largest retail BNPL Fintech in India and are efficiently working towards it,” he adds.