In 2015, Uday Somayajula, a resident of Mumbai, was planning to go to his school good friend Akshat Saxena in Delhi.
“I attempted reserving the flight tickets from a notable ticket-booking platform thrice. Whereas the quantity was deducted from my account, the transactions failed,” Uday remembers.
With not sufficient cash remaining in his debit card, Uday needed to lastly use his bank card to e-book the flights.
“It then struck me that almost all of India’s inhabitants didn’t personal a bank card,” he provides.
Each downside, a possibility
On the time, whereas ecommerce was already booming, transacting on-line was nonetheless a hustle. The fintech trade was grappling with as much as 80 % dropout price at check-out. Moreover, coming into the 16-digits card quantity and CVV for each transaction was a degree of friction. Thus, COD or cash-on-delivery was nonetheless prevalent then.
Availing credit score on the level of sale was very slim. “Actually, it continues to stay so, even at the moment,” Uday says.
“Once I wished to get a bank card, I needed to undergo a number of hassles and paperwork. It took me three-four weeks to get a bank card in hand,” he remembers.
The entire check-out course of, and the unavailability of credit score, deserved a whole lot of consideration. Mulling over this, Uday contacted Akshat and Aurko Bhattacharya, his former colleague at ICICI Financial institution.
The trio ended up founding fintech startup ePayLater in 2015.
Included in Mumbai, ePayLater lets prospects to ‘Purchase Now, Pay Later’ for frequent on-line purchases, enabling them to get entry to immediate credit score limits. With an interest-free credit score time period of 14-days, ePayLater has partnered with a number of firms, together with IRCTC, PVR, MakeMyTrip, Yatra, and Tata Croma.
The fintech startup, which additionally has a department workplace in Gurugram, additionally permits its prospects to avail its companies on BHIM UPI, extending ePayLater to main ecommerce platforms together with Amazon, Flipkart, Myntra, Jabong, and Uber.
In response to the founders, the startup processes month-to-month transaction volumes of Rs 100 crore.
Moreover this, ePayLater additionally gives B2B options. The platform permits small and particular person retailers to avail immediate credit to both arrange or get their companies operating.
In 2016, ePayLater raised seed funding value $2 million from three HNIs. It has additionally been backed by ICICI Financial institution and Japan’s GMO World Fintech Fund. Thus far, the startup has raised $3.Three million. Moreover, ePayLater was additionally recognised by the MeitY Startup Summit 2019, the place it received the DigiDhan Mission Fintech Award.
(Edited by Saheli Sen Gupta)