Fintech startup Paytail on Thursday revealed that it has raised $1.5 million from Cholamandalam and other marquee angel investors as part of its seed round. Chola’s entry on will further strengthen the capital supply on the platform, which is a key ingredient required to scale up the BNPL fintech business.
Along with Cholamandalam, Paytail is committed to building a network of other large financial institutions to cater to the pre-approved loan offers for consumers. Maple Capital was the investment banker for this transaction while Stratage Law was the legal advisors to the company.
The startup is also betting big on innovation to provide a seamless customer experience and enhance sales on the merchant side, claimed a statement from the company.
Paytail further plans to utilise the fresh funds to enhance the product and build a strong team to transform the experience of offline buyers and sellers as well achieve 10-15X growth rate in monthly transactions in the next 12 months.
Speaking on the capital injection, Vikas Garg, Co-founder of Paytail, said, “Since its inception, Paytail has been on a mission to create a level field for both offline buyers and sellers, as the retailers in this sector have been facing fierce competition from large e-businesses. 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. With this funding, we will be able to enhance the product and build a strong team. We have the vision to create the largest retail BNPL fintech in India and are efficiently working towards it.”
Operating since April 2021, the New-Delhi based startup has a network of 10+ corporates, 25,000 merchants and more than one lakh consumers within a short span of six months.
The tech startup is founded by Vikas Garg and Amit Chaturvedi, ex-colleagues from a US-based SaaS fintech unicorn.
